Adani Group firm ACC on Monday said it has acquired the remaining 55 per cent stake in Asian Concretes and Cements from its existing promoter at an enterprise value of Rs 775 crore, making it a fully-owned subsidiary.
ACC Ltd, a subsidiary of Ambuja Cements, is a part of Adani Cement.
Earlier, ACC held 45 per cent stake in Asian Concretes and Cements Pvt Ltd (ACCPL).
The company has done a "successful acquisition of 55 per cent stake in ACCPL from its existing promoter at an enterprise value of Rs 775 crore resulting in entire ownership of ACCPL," said an ACC statement.
The enterprise value includes cash and cash equivalent of Rs 35 crore, it added.
ACCPL has a 1.3 MTPA cement capacity in Nalagarh, Himachal Pradesh, while its subsidiary Asian Fine Cements Pvt Ltd (AFCPL) has a 1.5 MTPA cement capacity in Rajpura, Punjab.
"This acquisition is funded through internal accruals and will help ACC & its parent company Ambuja to further bolster market leadership in the lucrative North India market," it said.
With this acquisition, ACC's cement capacity has increased to 38.55 MTPA (million tonne per annum) and together with its parent company Ambuja, the capacity of Adani Cement has risen to 76.10 MPTA.
"This strategic move enhances ACC's cement capacity and progress on overall target of 140 MTPA capacity of Adani’s Cement Business by 2028," it said.
While ACC has an existing tolling arrangement with the Nalagarh unit, the Rajpura plant's additional 1.5 MTPA capacity will strategically cater to a vast customer base across three states – Himachal Pradesh, Haryana, and Punjab.
Both ACC and Ambuja Cements possess sufficient clinker to support the Rajpura plant, inclusive of its future expansions.
Commenting on the development, ACC CEO Ajay Kapur said:"With this acquisition, we are furthering our growth trajectory, enriching our portfolio, and continuing to accelerate our journey towards value creation for all our stakeholders. This aligns seamlessly with our vision for expansion."
The total capacity of cement production under Adani Group portfolio is 77.4 MTPA, which includes the 1.3 MTPA Dahej unit under Adani Cementation Ltd.
The Adani Group firm invests substantially with ongoing and planned capex, aiming to take total capacity to 106 MTPA by FY 2026.
Last month, Ambuja Cements completed the acquisition of Sanghi Industries at an enterprise value of Rs 5,185 crore.
Adani Cement is the second leading cement producer after Aditya Birla Group firm UltraTech Cements, which has a consolidated capacity of 137.85 million tonne per annum (MTPA).
Shares of ACC Ltd were trading at Rs 2,350.35 apiece, down 1.14 per cent from the previous close.