Ambuja’s Strategic Move: Adani-Backed Ambuja Cements Acquires 46.8% Stake in Orient Cement for ₹8,100 Crore - Read Now
Ambuja’s Strategic Move: Ambuja Cements, a company owned by the Adani Group, has signed a binding agreement to acquire a 46.8% stake in Orient Cement Ltd (OCL) for ₹8,100 crore. This strategic acquisition is part of Ambuja's ambitious plan to reach a capacity of 140 Million Tonnes Per Annum (MTPA) by 2030. With this move, Ambuja has overtaken Ultratech, an Aditya Birla Group company, which was also vying for the same stake.
The investment follows Ambuja's previous acquisitions, including Sanghi Cement last December and Penna Cement earlier this year for ₹10,422 crore. Under the Securities and Exchange Board of India (SEBI) regulations, Ambuja will make an open offer at ₹395.40 per equity share to the public shareholders of Orient Cement.
Orient Cement, which currently has a capacity of 5.6 MTPA for clinker and 8.5 MTPA for cement, along with a 95 MW Captive Power Plant (CPP) and a 10 MW Waste Heat Recovery System (WHRS), enhances Adani Group’s market share by an additional 2% across India.
OCL also holds a significant limestone mining lease in Chittorgarh, Rajasthan, with the potential to set up an additional 6 MTPA capacity in North India. This acquisition is expected to optimize Ambuja's logistics, reducing lead distances and costs associated with cement distribution.
Karan Adani, Director of Ambuja Cements, stated, “This acquisition marks a significant milestone in Ambuja's growth journey, aiming for 100 MTPA capacity in FY25.” The strategic assets of OCL are well-aligned with Ambuja's goals, leveraging renewable energy and alternative fuels.
CK Birla, Chairman of Orient Cement, expressed confidence in Ambuja as the ideal owner for driving future growth. With a strong focus on sustainability and renewable energy, OCL's integration into Adani's network is set to enhance operational efficiency and market competitiveness.
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