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Tag: Orient Cement Acquisition

  • Ambuja Cements seals CCI nod for game-changing Orient Cement buyout

    Ambuja Cements seals CCI nod for game-changing Orient Cement buyout

    MUMBAI: Adani-backed Ambuja Cements Ltd, one of India’s top cement makers, has laid the groundwork by securing the Competition Commission of India’s (CCI) approval for its acquisition of Orient Cement Ltd. With this regulatory nod, Ambuja is all set to mortar its dominance, brick by brick, as it paves the way for an industry power move that will set its expansion strategy in concrete.

    The deal, originally announced on 22 October 2024, involves a major takeover through a share purchase agreement. Ambuja Cements will acquire 7,76,49,413 equity shares, which make up 37.90 per cent of Orient Cement’s existing share capital. An additional purchase of 1,82,23,750 equity shares (8.90 per cent stake) will further bolster its holdings.

    But that’s not all—Ambuja is also rolling out an open offer to acquire up to 5,34,19,567 equity shares, representing 26 per cent of Orient Cement’s expanded share capital. The deal values the open offer at Rs 395.40 per share, putting serious weight behind Ambuja’s aggressive acquisition strategy.

    The green light from CCI came on 4 March 2025, with the regulator granting unconditional approval under Section 31(1) of the Competition Act, 2002. With no regulatory roadblocks, the cement giant is now positioned to finalise the transaction and accelerate its growth momentum.

    Ambuja Cements continues to make bold moves in the infrastructure and building materials sector. By bringing Orient Cement into its fold, Ambuja aims to boost its market presence and production capacity, cementing (pun intended) its leadership in India’s competitive cement industry.

    This strategic acquisition reinforces Ambuja’s commitment to expansion and efficiency. With regulatory hurdles cleared, the focus now shifts to execution—expect Ambuja to lay a stronger foundation for growth in the coming months.

  • Adani acquires Orient Cement for Rs 8,100 crore to boost cement capacity

    Adani acquires Orient Cement for Rs 8,100 crore to boost cement capacity

    Mumbai: Ambuja Cements, part of the Adani Group, announces the acquisition of Orient Cement Ltd. (OCL)  at an equity value of Rs 8,100 crore, marking a significant step towards its goal of 100+ MTPA operational capacity by FY25. The deal involves the purchase of a 46.8 per cent stake in OCL, enhancing Ambuja’s presence in the Indian cement market while expanding its sustainability footprint.  

    The acquisition adds 16.6 MTPA of capacity (8.5 MTPA operational and 8.1 MTPA ready for execution), strengthening Ambuja’s competitive edge in core markets and increasing pan-India market share by 2 per cent. OCL’s strategic assets, including 5.6 MTPA clinker capacity, efficient plants, and renewable energy initiatives, complement Adani Group’s existing cement footprint.  

    Ambuja Cements director, Karan Adani commented, “This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition. By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2 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 16.6 MTPA.”  

    Strategic Advantages and Expansion Plans  

    – Enhanced Capacity and Market Reach: The acquisition provides potential for 6 MTPA additional capacity in North India, leveraging OCL’s high-quality limestone reserves in Chittorgarh, Rajasthan.  

    – Sustainability Initiatives: OCL recently commissioned a Waste Heat Recovery System (WHRS) in Chittapur, with plans to finalise 16 MW solar capacity at the same location and 3.7 MW solar in Jalgaon.  

    – Operational Efficiency and Logistics: OCL’s assets, including 95 MW Captive Power Plants (CPP) and railway sidings, will reduce lead distances and logistics costs.  

    Orient Cement, chairman, CK Birla said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer-centric, technology-driven, and service-based businesses. We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders.”  

    With a focus on capacity optimisation, Ambuja aims to improve OCL’s cost efficiency and operating performance while leveraging synergies with its existing cement operations.