Ambuja Cements will acquire 100 per cent stake from Hyderabad-based PCIL promoter group P. Pratap Reddy & Family.
The acquisition, financed from internal accruals, will improve Adani Cement's market share by 2 per cent across India and 8 per cent in South India.
Ajay Kapoor, CEO and Whole-time Director, Ambuja Cement, said, "This historic acquisition is an important step in the rapid growth journey of Ambuja Cement."
"By acquiring PCIL, Ambuja is set to expand its market presence in South India and strengthen its position as a pan-India leader in the cement industry," he said.
PCIL has 14 MTPA cement capacity, of which 10 MTPA is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA) and will be completed within 6 to 12 months. PCIL's strategic location and ample limestone reserves provide an opportunity to overcome bottlenecks and increase cement capacity through additional investments.
“Importantly, the Bulk Cement Terminals (BCTs) will prove to be a game-changer by providing access to the eastern and southern parts of peninsular India, in addition to entry into Sri Lanka through the sea route,” Kapoor said.
According to the company, PCIL's existing dealers will migrate to Adani Cement's market network to bring tremendous synergy.
In FY24, Adani Group successfully completed three acquisitions (GU in Sanghi, Asian Cements and Tuticorin) as cement capacity increased by 11.4 million tonnes per annum (MTPA), taking the total capacity to 78.9 MTPA.
Meanwhile, Ambuja Cements reported profit after tax (PAT) for FY20 at Rs 4,738 crore, an increase of 73 per cent from Rs 6,400 crore by 119 per cent (year-on-year).
The acquisition, financed from internal accruals, will improve Adani Cement's market share by 2 per cent across India and 8 per cent in South India.
Ajay Kapoor, CEO and Whole-time Director, Ambuja Cement, said, "This historic acquisition is an important step in the rapid growth journey of Ambuja Cement."
"By acquiring PCIL, Ambuja is set to expand its market presence in South India and strengthen its position as a pan-India leader in the cement industry," he said.
PCIL has 14 MTPA cement capacity, of which 10 MTPA is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA) and will be completed within 6 to 12 months. PCIL's strategic location and ample limestone reserves provide an opportunity to overcome bottlenecks and increase cement capacity through additional investments.
“Importantly, the Bulk Cement Terminals (BCTs) will prove to be a game-changer by providing access to the eastern and southern parts of peninsular India, in addition to entry into Sri Lanka through the sea route,” Kapoor said.
According to the company, PCIL's existing dealers will migrate to Adani Cement's market network to bring tremendous synergy.
In FY24, Adani Group successfully completed three acquisitions (GU in Sanghi, Asian Cements and Tuticorin) as cement capacity increased by 11.4 million tonnes per annum (MTPA), taking the total capacity to 78.9 MTPA.
Meanwhile, Ambuja Cements reported profit after tax (PAT) for FY20 at Rs 4,738 crore, an increase of 73 per cent from Rs 6,400 crore by 119 per cent (year-on-year).
