Indian cement producer ACC has taken full ownership of Asian Concretes and Cements Private Limited (ACCPL) by acquiring the remaining 55% stake from ACCPL promoters.
The latest transaction has an enterprise value (EV) of Rs7.75bn ($93.31m). This EV includes Rs350m in cash and cash equivalents.
Commenting on the latest transaction, ACC director and CEO Ajay Kapur said: “With this acquisition, we are furthering our growth trajectory, enriching our portfolio, and continuing to accelerate our journey towards value creation for all our stakeholders.
“This aligns seamlessly with our vision for expansion and serves as a testament to ‘ACC’s Bharosa Atoot’, resonating deeply with our values.”
ACC, a subsidiary of cement and building materials company Ambuja Cements, already held a 45% stake in cement producer ACCPL.
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According to ACC, the current acquisition was funded entirely through internal accruals and is expected to strengthen both ACC and Ambuja Cements’ market position in North India.
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By GlobalDataACCPL currently has a capacity of producing 1.3mtpa of cement at its plant in Nalagarh, Himachal Pradesh, India.
ACCPL’s subsidiary Asian Fine Cements Private Limited also has a production capacity of 1.5mtpa in Rajpura, Punjab, India.
The strategic move to acquire the remaining stake in ACCPL is further expected to support ACC’s target to achieve a 140mtpa capacity for Adani’s Cement business by 2028.
ACCPL’s Nalagarh unit, which already has a tolling arrangement with ACC, along with the Rajpura plant, will help ACC to address the demands of customers across Himachal Pradesh, Haryana, and Punjab.
The acquisition not only enhances ACC’s cement capacity but also supports the future expansion plans of the Rajpura plant, which has sufficient clinker supply from ACC and Ambuja Cements.
With its ongoing and planned capital expenditure investments, Adani Group’s cement capacity is expected to reach 106mtpa by financial year 2026.
