Adani Group to acquire Orient Cement from CK Birla Group for Rs 8,100 crore

New Delhi: The Adani Group announced on Tuesday that it will purchase Orient Cement from the CK Birla group for Rs 8,100 crore as a part of their growth strategy. Ambuja Cements, a part of the diverse Adani Group vantures, has entered a binding agreement to acquire Orient Cement Ltd (OCL) for an equity value of Rs. 8.1 billion.

Ambuja Cements to Acquire 46.8 pc of OCL Shares

According to a joint statement released by both the companies, Ambuja will acquire 46.8 pc of OCL shares from current promoters and some public shareholders. It has been stated that the purchase will be completely financed from internal earnings. The most recent purchase will increase Adani Cement's capacity by 16.6 MTPA, operated through Ambuja Cements in the industry. 

In June of this year, Adani revealed the purchase of Penna Cement, located in Hyderabad, for a total value of Rs 10,422 crore, resulting in an increase of 14 MTPA capacity for the nation's second biggest producer.

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"This timely purchase signifies another important progression in Ambuja Cements' rapid expansion, boosting cement capacity by around 30 MTPA just two years after Ambuja's acquisition," stated Karan Adani, Director of Ambuja Cements. 

Acquiring OCL will enable Ambuja to achieve 100 MTPA cement capacity by FY25, thereby expanding Adani Cement's footprint in key markets and increasing its national market share by 2 pc. OCL currently has a clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA, with approval to expand the clinker capacity by an additional 6.0 MTPA and the cement capacity by an additional 8.1 MTPA. 

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