Sagar Cements expects to announce the outcome of its bid to acquire Andhra Cements before the end of December 2022. Sagar currently has a production capacity of 8.25Mta but hopes to expand this to 10Mta by FY24-25. Andhra Cement would bring with it 1.8Mta of cement capacity and 1.65Mta of clinker capacity.
According to a report in BusinessLine Online, Sagar Cements is fully prepared for the acquisition to go through. "We are fully funded from Andhra perspective. We took a INR500 odd crore of structured debt and also raised a INR350 crore of equity from Premji Invest. We do have some internal accruals. I think these three should help us acquire the assets," said Sreekanth Reddy, joint managing director, Sagar Cements.
The company reportedly also has its eye on another asset for possible acquisition. “We do have at least another asset in our radar. But the outcome of Andhra would decide how we would progress on the other one," Mr Reddy added.
