ACC Ltd, a subsidiary of Ambuja Cement Ltd under the Adani conglomerate, has successfully finalised the acquisition of Asian Concretes and Cements Pvt Ltd (ACCPL), thereby converting it into a wholly-owned subsidiary. The acquisition, valued at an enterprise amount of Rs 775 crore, encompasses cash and cash equivalents totaling Rs 35 crore. This strategic acquisition is in alignment with ACC’s growth strategy, emphasising the generation of value for its stakeholders.
This acquisition has notably augmented ACC’s overall cement production capacity, elevating it to 38.55 million tonnes per annum (MTPA). When amalgamated with Ambuja Cements, the Adani Group’s collective cement capacity now tallies at 77.40 MTPA. Both ACC and Ambuja Cements aim to further amplify this capacity to 106 MTPA by the fiscal year 2025-26 through continued and planned capital investments.
ACCPL currently operates a cement plant with a production capacity of 1.3 MTPA situated in Nalagarh, Himachal Pradesh. Additionally, its subsidiary, Asian Fine Cements Pvt Limited (AFCPL), manages a 1.5 MTPA cement facility located in Rajpura, Punjab. The strategic positioning of the Rajpura plant provides ACC with a favourable vantage point to cater to a diverse customer base across Himachal Pradesh, Haryana, and Punjab. This strategic acquisition reinforces ACC’s aspiration to fortify its market dominance in the thriving North Indian market.
Both ACC and Ambuja Cements possess ample clinker supplies to support the operations of the Rajpura plant, including its future expansions. This ensures a seamless assimilation of the newly acquired assets into ACC’s existing operational framework, solidifying its foothold in the region.
RTM Watch’s Take
The acquisition of Asian Concretes and Cements by ACC is a significant milestone in the company’s growth trajectory. By increasing its cement production capacity and expanding its geographical presence, ACC is well-positioned to capitalise on the growing demand for cement in North India. This strategic move aligns with ACC’s vision for expansion and value creation for all stakeholders. With the backing of the Adani Group, ACC is poised to further strengthen its market leadership and contribute to the overall growth of the cement industry in India.
