Adani group acquires Orient Cement

Ambuja Cements, part of the Adani Group, has agreed to acquire Orient Cement Ltd at the equity value of INR81bn (US$963.4m). This binding agreement set Ambuja to acquire a 46.8 per cent stake in Orient Cement. This acquisition will add 16.6Mta capacity, accelerating Ambuja’s journey to an operational capacity of over 100Mta in FY24-25. The target capacity of the group is 140Mta by 2028. This acquisition will provide an additional capacity of 6Mta in north India, leveraging Orient Cement’s high quality limestone reserves in Rajasthan. Orient Cement has an existing 5.6Mta clinker and 8.5Mta cement operational capacity, improving Adani Group’s market share pan-India by two per cent in the cement industry.

Karan Adani, director of Ambuja Cements, said, “This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30Mta within two years of Ambuja’s acquisition. By acquiring OCL, Ambuja is poised to reach 100Mta capacity in FY24-25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by two per cent. OCL’s assets are highly efficient, equipped with railway sidings and well supported by captive power plants, renewable energy, WHRS and AFR facilities. OCL’s strategic locations, high-quality limestone reserves and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6Mta.”