ACC buys Asian Concretes and Cements for Rs 775 cr

New Delhi, January 8

Adani Group firm ACC on Monday said it has acquired the remaining 55% stake in Asian Concretes and Cements from its existing promoter at an enterprise value of Rs 775 crore, making it a fully-owned subsidiary.

Deal dynamics

• The Adani Group firm already had 45% stake in Asian Concretes & Cements
• ACCPL has a 1.3 MTPA cement capacity in Nalagarh, while its subsidiary Asian Fine Cements Pvt Ltd has a 1.5 MTPA cement capacity in Rajpura
• The enterprise value of the deal includes cash and cash equivalent of Rs 35 crore

ACC Ltd, a subsidiary of Ambuja Cements, is a part of Adani Cement. Earlier, ACC held 45% stake in Asian Concretes and Cements Pvt Ltd (ACCPL).

The company has done a “successful acquisition of 55% stake in ACCPL from its existing promoter at an enterprise value of Rs 775 crore resulting in entire ownership of ACCPL,” said an ACC statement.

The enterprise value includes cash and cash equivalent of Rs 35 crore, it added. ACCPL has a 1.3 MTPA cement capacity in Nalagarh, Himachal Pradesh, while its subsidiary Asian Fine Cements Pvt Ltd (AFCPL) has a 1.5 MTPA cement capacity in Rajpura, Punjab.

“This acquisition is funded through internal accruals and will help ACC & its parent company Ambuja to further bolster market leadership in the lucrative North India market,” it said.

With this acquisition, ACC’s cement capacity has increased to 38.55 MTPA (million tonne per annum) and together with its parent company Ambuja, the capacity of Adani Cement has risen to 76.10 MPTA.

“This strategic move enhances ACC’s cement capacity and progress on overall target of 140 MTPA capacity of Adani’s Cement Business by 2028,” it said.

While ACC has an existing tolling arrangement with the Nalagarh unit, the Rajpura plant’s additional 1.5 MTPA capacity will strategically cater to a vast customer base across three states – Himachal Pradesh, Haryana, and Punjab.

Both ACC and Ambuja Cements possess sufficient clinker to support the Rajpura plant, inclusive of its future expansions.