Adani Group Cement Arm To Acquire My Home Group's Grinding Unit For $50 Mln

Indian conglomerate Adani Group’s cement arm Ambuja Cements Ltd. agreed to acquire My Home Group's 1.5 million tons per annum (MTPA) cement grinding unit for 413.75 crore rupees ($50 million).

The plant, located near the Tuticorin Port in the southern Indian state of Tamil Nadu with a long-term fly ash supply agreement for raw material sourcing, will be value accretive from the beginning, Ambuja Cements said in a stock exchange announcement.

The company entered into a definitive agreement with My Home Industries Private Ltd. to acquire its cement grinding unit in Tuticorin today. The acquisition, which will be funded through internal accruals, would boost Adani Group’s total cement capacity to 78.9 MTPA.

The cement maker said the plant is spread across 61 acres of land in Tuticorin and its acquisition will also aid in enhancing the group’s coastal footprint across southern markets of Tamil Nadu and Kerela.

Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant, ensuring cost-efficient operations, Ambuja Cements said.

“In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilization,” Adani Group’s Cement Business CEO Ajay Kapur said.

Ambuja Cements didn’t disclose deal’s likely closing timeline.

Note: $1 = 83.6092 Indian rupees

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