Wed Oct 23 09:57:56 UTC 2024: **Summary of the News Article:**
– **Acquisition Announcement:** The Adani Group, led by billionaire Gautam Adani, has announced its decision to acquire Orient Cement Ltd (OCL) from the CK Birla Group for Rs 8,100 crore as part of its expansion strategy.
– **Details of the Agreement:** Ambuja Cements, part of Adani Cement, has signed a binding agreement to purchase 46.8% of shares in OCL from current promoters and certain public shareholders. This acquisition will be funded entirely through internal accruals.
– **Capacity Increase:** The acquisition is expected to add 16.6 million tonnes per annum (MTPA) to the cement capacity of Adani Cement, which currently operates under Ambuja Cements.
– **Recent Acquisitions:** This move follows a previous acquisition in June 2024, when Adani acquired Penna Cement for Rs 10,422 crore, adding 14 MTPA capacity.
– **Growth Plans:** Karan Adani, Director of Ambuja Cements, stated that this acquisition is a significant step toward increasing Ambuja Cements’ total capacity by approximately 30 MTPA, aiming to reach 100 MTPA by FY25. Additionally, it aims to enhance Adani Cement’s market share by 2% in key markets.
– **OCL’s Operational Capacity:** Orient Cement has an existing clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA, with approvals to increase these capacities by an additional 6.0 MTPA and 8.1 MTPA respectively.
This acquisition marks a notable expansion in the Adani Group’s cement production capabilities, reinforcing its presence in the Indian market.
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