ACC Limited completes acquisition of Asian Concretes & Cements to expand cement capacity
ACC Limited, a subsidiary of Ambuja Cements Limited and a leading entity in the cement and building materials sector, announced the acquisition of the remaining 55% stake in Asian Concretes and Cements Private Limited (ACCPL). This transaction, at an Enterprise Value of Rs. 775 Crores, results in ACC Limited gaining full ownership of ACCPL, including Cash & Cash Equivalent of Rs. 35 Crores.
ACCPL’s Cement Capacity and Strategic Locations
ACCPL, with a cement capacity of 1.3 MTPA in Nalagarh (Himachal Pradesh) and its subsidiary Asian Fine Cements Pvt Limited (AFCPL) with 1.5 MTPA in Rajpura (Punjab), significantly contributes to the cement production capacity in these regions. The acquisition is strategically aimed to reinforce ACC & its parent company Ambuja’s market leadership in North India.
Funding and Expected Impact of the Acquisition
Funded entirely through internal accruals, this acquisition is anticipated to be completed by April 2024. It will enhance ACC’s cement capacity, contributing to the overall target of 140 MTPA capacity of Adani’s Cement Business by 2028.
ACC Limited Strengthens Presence in North India with Asian Concretes and Cements Private Limited Acquisition
Management’s Vision and Future Plans
Ajay Kapur, WTD and CEO of ACC Limited, highlighted the acquisition’s alignment with ACC’s vision for expansion and value creation. This move signifies ACC’s commitment to enriching its portfolio and accelerating growth in the cement industry. The additional capacity from the Rajpura plant is set to cater to customers across Himachal Pradesh, Haryana, and Punjab.
ACC and Ambuja Cements’ Growing Market Presence
The acquisition reinforces Ambuja and ACC’s market leadership and elevates Adani Group’s overall cement capacity to 77.40 MTPA. With ongoing and planned CAPEX investments, Adani Group’s cement capacity is expected to reach 106 MTPA by FY 2026.
ACC Limited’s full acquisition of ACCPL represents a significant step in strengthening its market presence and capacity in the lucrative North India cement market. This strategic move underlines ACC’s continuous efforts to expand and lead in the cement and building materials sector.