Adani Family Boosts Stake in Ambuja Cements with Rs 8,339 Crore Infusion

By siliconindia  |  Wednesday, 17 April 2024, 06:15:25 PM IST

Adani Family Boosts Stake in Ambuja Cements with Rs 8,339 Crore Infusion
The Adani Family has reaffirmed its commitment to Ambuja Cements by fully subscribing to the warrants program, injecting an additional Rs 8,339 crore into the company. This move elevates their stake in Ambuja Cements to 70.3%, marking a significant investment following previous injections of Rs 5,000 crore in October 2022 and Rs 6,661 crore in March 2024. With a total infusion of Rs 20,000 crore post-acquisition, the Adani Group aims to bolster Ambuja Cements towards achieving a capacity of 140 million tonnes per annum (MTPA) by 2028.
Ajay Kapur, the Whole Time Director and CEO of Ambuja Cements Ltd, emphasized the strategic significance of this capital influx, highlighting its role in facilitating accelerated growth, capital management initiatives, and fortifying the company's balance sheet. Kapur underscored the belief in Ambuja's vision and business model, stressing a commitment to sustainable value creation for stakeholders.
The additional investment is poised to strengthen Ambuja's financial standing, providing the company with enhanced capabilities to pursue ambitious growth plans and capitalize on emerging market opportunities. It will support strategic initiatives such as debottlenecking capex to improve operational performance and drive efficiencies across resources and the supply chain.
In a recent development, Ambuja Cements announced the acquisition of My Home Group's 1.5 MTPA cement grinding unit in Tuticorin, Tamil Nadu, for Rs 413.75 crore. This acquisition further expands the Adani Group's cement capacity, bringing it to 78.9 MTPA. Alongside its subsidiaries ACC Ltd and Sanghi Industries Ltd, Ambuja Cements now boasts 18 integrated cement manufacturing plants and 19 cement grinding units across the country.
The consolidation of these assets underscores the Adani Group's strategic vision for the cement sector, positioning Ambuja Cements as a formidable player with significant scale and operational excellence. The company's relentless pursuit of growth, operational efficiency, and commitment to sustainability sets the stage for continued success and value creation in the industry.

ON THE DECK

siliconindia