Ambuja Cements Expands with Strategic 46.8% Stake in Orient Cement

Ambuja Cements, part of Adani Group, is set to acquire a 46.8% stake in Orient Cement Ltd for Rs 8,100 crore. The acquisition boosts Ambuja's goal of 140 MTPA capacity by 2028, enhancing Adani Cement's market share and strengthening its portfolio with OCL's assets and strategic locations.

Ambuja Cements, a prominent player within the Adani Group's cement arm, announced the acquisition of a 46.8% stake in Orient Cement Ltd (OCL) on Tuesday. This strategic move, valued at Rs 8,100 crore, signifies a key milestone in Ambuja's target to achieve a cement capacity of 140 million tonnes per annum (MTPA) by 2028. The acquisition will be funded entirely by Ambuja's internal reserves, allowing the firm to retain its debt-free status.

Through this acquisition, Ambuja Cements plans to boost its production capacity by approximately 30 MTPA within the next two years, setting a path to achieve 100 MTPA operational capacity by fiscal year 2025. This deal will strengthen Adani Cement's position across the Indian market, increasing its industry share by an estimated 2%.

The transaction also brings in OCL's extensive asset portfolio, including a clinker capacity of 5.6 MTPA, a cement operational capacity of 8.5 MTPA, and a robust power infrastructure comprising a 95 MW captive power plant. With strategic locations and significant limestone reserves, OCL is a perfect fit for Adani Cement's expansion strategy.

(With inputs from agencies.)