Adani Group-promoted ACC Limited on Monday announced it has acquired the remaining 55 per cent stake in Asian Concretes and Cements for an enterprise value of Rs 775 crore.
Asian Concretes (ACCPL) was earlier an associate company of ACC, in which it already held a 45 per cent stake. ACC had first invested in Asian Concretes in 2010 for an undisclosed value.
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The company in its statement said it has acquired the remaining 55 per cent stake in ACCPL from its existing promoters, resulting in entire ownership of ACCPL. The enterprise value of Rs 775 crore includes cash and cash equivalent of Rs 35 crore.
ACCPL has 1.3 MTPA cement capacity in Nalagarh of Himachal Pradesh, while its subsidiary Asian Fine Cements Private Limited (AFCPL) has 1.5 MTPA cement capacity in Rajpura of Punjab.
“While ACC has an existing tolling arrangement with the Nalagarh unit, Rajpura plant’s additional 1.5 MTPA capacity will strategically cater to a vast customer base across three states – Himachal Pradesh, Haryana, and Punjab. Notably, ACC and Ambuja Cements possess sufficient clinker to support the Rajpura plant, inclusive of its future expansions,” the company said in its statement.
ACC said the entire acquisition is funded through internal accruals and will help ACC and parent company Ambuja Cements to further bolster market leadership in the lucrative North India market.
With this increased stake, Adani Cement’s overall capacity, including ACC and Ambuja Cements, now stands at 77.40 MTPA. “With ongoing and planned CAPEX investments, the Adani Group’s cement capacity is poised to reach 106 MTPA by FY 2026,” the company said. The group has a target to touch 140 MTPA capacity by 2028.
