Ahmedabad: Adani Group-owned cement and building material company Ambuja Cements signed a definitive agreement to acquire My Home Groups 1.5 MTPA cement grinding unit in Tamil Nadus Tuticorin.
The acquisition was estimated at a total value of Rs. 413.75 crore through internal accruals, Ambuja Cements said.
It will aid the company in enhancing the coastal footprint across the southern markets of Tamil Nadu and Kerela,
The total cement capacity of Adani Group stands at 78.9 MTPA.
The asset spread across 61 acres of land, conveniently located near the Tuticorin Port with a long-term fly ash agreement will be value accretive from the beginning. Ambuja Cements will leverage the coastal footprint and state-of-the-art marine infrastructure and equipment, ensuring that the best quality products are delivered, the company said.
This acquisition would enable Ambuja Cements to access the southern market customers.
Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with the coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations.
Ajay Kapur, CEO Cement Business, Adani Group, said, We are glad to announce this acquisition, strengthening our foothold in the region and aligning perfectly with our commitment to delivering high-quality products and services to our customers.
In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilisation, Kapur noted.
