In New Delhi, Adani group company Ambuja Cements, which is aggressively pushing for expansion, has won 24 bids for new limestone mines estimated to have a total resource of 587 million tonnes of limestone, according to the company's annual report. the company.
This is in addition to the one billion tonne reserve of Sanghi Industries, a Saurashtra-based company that the billionaire Gautam Adani-owned firm acquired last November for an enterprise value of Rs 5,185 crore.
"Winning bids for coal and limestone mines is critical to ensuring self-sufficiency as coal mines in Dahegaon-Gowari and the existing Gare Palma coal block meet 40 per cent of Ambuja Cements Ltd's coal needs ( ACL)," he said.
The Adani group has ambitions to have a capacity of 140 MTPA (million tonnes per annum) by 2028. It has enough cash to get there through a combination of acquisitions and brownfield expansion.
Earlier this month, Adani Group announced the acquisition of Hyderabad-based Penna Cement for an enterprise value of Rs 10,422 crore, which will add 14 MTPA to the growth-hungry ACL, taking its total capacity to 89 MTPA .
It was an all-cash deal and during the post-deal call with analysts, ACL CFO Vinod Bahety said that even after this acquisition of Penna Cement, which will help it increase its share in the southern market and to enter Sri Lanka, it will be with another 10,000 million rupees in cash by the end of this year.
"As you all know that we have been having good cash and cash equivalent, it will be a good deployment of this amount and we will earn much more than 15 per cent in terms of ROCE (Return on Capital Employed)," he said.
Bahety further added, "The entire acquisition will be funded through cash and cash equivalents. After all this, by the end of this year, my estimate is that we will have almost Rs 10,000 crore plus crores in cash."
Additionally, the company is also increasing its involvement in alternative fuels and green energy.
"With an investment of over Rs 10,000 crore in green energy projects, the company aims to power 60 per cent of its
"Expanded capacity through 1 GW of solar and wind power and 376 MW of waste heat recovery system by FY 2027-28 and leveraging compelling economic benefits," he said.
Additionally, Ambuja Cements said it plans to expand the framework supply agreement with its subsidiary ACC Ltd and the newly acquired Sanghi Industries Ltd (SIL) to further increase revenue and profitability.
"During the year under review, the company sold 5.6 million tonnes of CLC (cement and clinker (CLC)) to ACC under the framework supply agreement," he said.
The framework supply agreement produced several benefits, including achieving synergies and economies of scale, improving the efficiency of operational and logistics costs, and strengthening sustainability through the judicious use of fuel and
Another resources.
"Going forward, the company remains committed to exploring and expanding the master supply agreement, with the aim of further increasing revenue and profitability," he said.
Regarding the Indian cement industry, ACL said it is the second largest producer globally, and in fiscal 2022-23, the Indian cement market reached a substantial size of 397 MTPA, helped by a solid growth in the housing sector and continued
investments in infrastructure development.
"The industry is likely to grow by an impressive 9-10 per cent during FY 2023-24 and reach a total volume of 425-430 MTPA," he said, adding that in FY 2024-25 "he anticipates the demand will increase between 8 and 9 percent." penny,"
"It anticipates 150-160 MTPA in capacity additions over the next five years" through a combination of organic and inorganic expansions, he added.
For the financial year ended March 31, 2024, ACL's consolidated operating income, which also includes ACC, was Rs 33,159.64 crore.
This is in addition to the one billion tonne reserve of Sanghi Industries, a Saurashtra-based company that the billionaire Gautam Adani-owned firm acquired last November for an enterprise value of Rs 5,185 crore.
"Winning bids for coal and limestone mines is critical to ensuring self-sufficiency as coal mines in Dahegaon-Gowari and the existing Gare Palma coal block meet 40 per cent of Ambuja Cements Ltd's coal needs ( ACL)," he said.
The Adani group has ambitions to have a capacity of 140 MTPA (million tonnes per annum) by 2028. It has enough cash to get there through a combination of acquisitions and brownfield expansion.
Earlier this month, Adani Group announced the acquisition of Hyderabad-based Penna Cement for an enterprise value of Rs 10,422 crore, which will add 14 MTPA to the growth-hungry ACL, taking its total capacity to 89 MTPA .
It was an all-cash deal and during the post-deal call with analysts, ACL CFO Vinod Bahety said that even after this acquisition of Penna Cement, which will help it increase its share in the southern market and to enter Sri Lanka, it will be with another 10,000 million rupees in cash by the end of this year.
"As you all know that we have been having good cash and cash equivalent, it will be a good deployment of this amount and we will earn much more than 15 per cent in terms of ROCE (Return on Capital Employed)," he said.
Bahety further added, "The entire acquisition will be funded through cash and cash equivalents. After all this, by the end of this year, my estimate is that we will have almost Rs 10,000 crore plus crores in cash."
Additionally, the company is also increasing its involvement in alternative fuels and green energy.
"With an investment of over Rs 10,000 crore in green energy projects, the company aims to power 60 per cent of its
"Expanded capacity through 1 GW of solar and wind power and 376 MW of waste heat recovery system by FY 2027-28 and leveraging compelling economic benefits," he said.
Additionally, Ambuja Cements said it plans to expand the framework supply agreement with its subsidiary ACC Ltd and the newly acquired Sanghi Industries Ltd (SIL) to further increase revenue and profitability.
"During the year under review, the company sold 5.6 million tonnes of CLC (cement and clinker (CLC)) to ACC under the framework supply agreement," he said.
The framework supply agreement produced several benefits, including achieving synergies and economies of scale, improving the efficiency of operational and logistics costs, and strengthening sustainability through the judicious use of fuel and
Another resources.
"Going forward, the company remains committed to exploring and expanding the master supply agreement, with the aim of further increasing revenue and profitability," he said.
Regarding the Indian cement industry, ACL said it is the second largest producer globally, and in fiscal 2022-23, the Indian cement market reached a substantial size of 397 MTPA, helped by a solid growth in the housing sector and continued
investments in infrastructure development.
"The industry is likely to grow by an impressive 9-10 per cent during FY 2023-24 and reach a total volume of 425-430 MTPA," he said, adding that in FY 2024-25 "he anticipates the demand will increase between 8 and 9 percent." penny,"
"It anticipates 150-160 MTPA in capacity additions over the next five years" through a combination of organic and inorganic expansions, he added.
For the financial year ended March 31, 2024, ACL's consolidated operating income, which also includes ACC, was Rs 33,159.64 crore.
