New Delhi, Ambuja Cements on Monday said it will acquire the cement grinding unit of My Home Group in Tuticorin, Tamil Nadu, for a total consideration of Rs 413.75 crore.
The company - a part of the Adani Group - has signed a definitive agreement to acquire the cement grinding unit of My Home Group, with a capacity of 1.5 MTPA, Ambuja Cements said in a statement.
"The acquisition through international sources at an aggregate consideration of Rs 413.75 crore will help expand Coastal's footprint in the southern markets of Tamil Nadu and Kerala," it said.
The company said the total cement capacity of Adani Group is 78.9 MTPA.
Ajay Kapoor, CEO, Cement Business, Adani Group, said, “Apart from the infrastructure and geographical advantages, Ambuja Cement will also inherit the existing dealer network and retain existing employees, thereby facilitating a smooth transition and accelerating utilization.” "Will increase."
The grinding unit is spread over 61 acres near Tuticorin port with long term fly ash agreement. This will be a value add from the get-go, the statement said, adding that Ambuja Cements will leverage the coastal footprint.
This acquisition provides access to customers in the southern market.
Additionally, according to the statement, the limited availability of limestone in Tamil Nadu presents unique competitive advantages with coastal movement of clinker from the Sanghipuram plant ensuring cost-efficient operations.
The company - a part of the Adani Group - has signed a definitive agreement to acquire the cement grinding unit of My Home Group, with a capacity of 1.5 MTPA, Ambuja Cements said in a statement.
"The acquisition through international sources at an aggregate consideration of Rs 413.75 crore will help expand Coastal's footprint in the southern markets of Tamil Nadu and Kerala," it said.
The company said the total cement capacity of Adani Group is 78.9 MTPA.
Ajay Kapoor, CEO, Cement Business, Adani Group, said, “Apart from the infrastructure and geographical advantages, Ambuja Cement will also inherit the existing dealer network and retain existing employees, thereby facilitating a smooth transition and accelerating utilization.” "Will increase."
The grinding unit is spread over 61 acres near Tuticorin port with long term fly ash agreement. This will be a value add from the get-go, the statement said, adding that Ambuja Cements will leverage the coastal footprint.
This acquisition provides access to customers in the southern market.
Additionally, according to the statement, the limited availability of limestone in Tamil Nadu presents unique competitive advantages with coastal movement of clinker from the Sanghipuram plant ensuring cost-efficient operations.
