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April 16, 2024 02:22 am | Updated 02:22 am IST – New Delhi
File. | Photo Credit: Reuters
Ambuja Cements on April 15 said it will acquire My Home Group's cement grinding unit at Tuticorin in Tamil Nadu for a total value of ₹413.75 crore.
The company — a part of the Adani Group — has signed a definitive agreement to acquire the cement grinding unit of the My Home Group, which has a capacity of 1.5 MTPA, Ambuja Cements said in a statement.
"The acquisition estimated at a total value of ₹413.75 crore through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerala," it added.
The total cement capacity of Adani Group stands at 78.9 MTPA, the company said.
"In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilisation," Ajay Kapur, CEO, Cement Business, Adani Group, said.
The grinding unit is spread across 61 acres near the Tuticorin Port with a long-term fly ash agreement. It will be value accretive from the beginning, the statement said, adding that Ambuja Cements will leverage the coastal footprint.
This acquisition provides access to southern market customers.
Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations, as per the statement.
merger, acquisition and takeover
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