Ambuja Cements is set to bolster its coastal presence in the southern markets of Tamil Nadu and Kerala with the acquisition of a 1.5 MTPA cement grinding unit in Tuticorin, representing a strategic move for the company. The acquisition, valued at ₹413.75 crore, will be funded through internal accruals.
With this addition, the Adani Group’s total cement capacity now reaches 78.9 MTPA. Currently, UltraTech leads the cement sector in the country, with its capacity surpassing the 150 MTPA mark.
Ambuja Cements intends to leverage the existing dealer network and retain current employees to ensure a seamless transition and facilitate increased utilization of the acquired unit.
Situated near the Tuticorin Port and spanning across 61 acres of land, the plant boasts a long-term fly ash supply agreement for raw material sourcing, making it a valuable asset for Ambuja.
The strategic advantage of coastal movement of clinker from the Sanghipuram Plant due to limited limestone availability in Tamil Nadu enhances the cost efficiency of operations.
Last year in August, the Adani Group acquired a controlling stake in Sanghi Cements through Ambuja at an enterprise value of ₹5,000 crore. Additionally, Ambuja recently divested a 2% stake in Sanghi Industries.
Following the announcement, shares of Ambuja Cement have rebounded from their initial lows and are currently trading 0.4% higher at ₹611.45.