Ahmedabad(Gujarat): Ambuja Cements, a subsidiary of the Adani Group, has taken a significant step in its expansion by acquiring a 46.8% stake in Orient Cement Ltd for ₹8,100 crore. This acquisition is crucial for Adani’s vision to achieve over 100 million tonnes per annum (MTPA) operational capacity by FY25, and an ambitious 140 MTPA by 2028.
Orient Cement, part of the CK Birla Group, contributes to this growth with a clinker capacity of 5.6 MTPA and a cement production capacity of 8.5 MTPA. The company also boasts a renewable energy portfolio, including a 95 MW captive power plant and a 10 MW waste heat recovery system, along with a 33 MW renewable energy spread across key Indian states like Telangana, Karnataka, and Maharashtra. These assets offer tremendous growth potential, with Orient’s total cement capacity expected to increase to 16.6 MTPA.
Commenting on the acquisition, Karan Adani, Director of Ambuja Cements, said, “This acquisition marks another significant step in Ambuja Cements’ accelerated growth journey, increasing our cement capacity by around 30 MTPA within two years. By acquiring Orient Cement, Ambuja is poised to achieve its milestone of 100 MTPA operational capacity by FY25, while also positioning itself strongly for further expansion.”
This strategic move not only enhances Adani’s market share in the cement industry but also strengthens its pan-India presence, adding approximately 2% to its existing market share. Additionally, the acquisition is expected to be funded entirely through Ambuja’s internal accruals, maintaining its debt-free status.(Input from agencies)
