Ambuja Cements, the Adani group's cement and building materials company, has signed an agreement to acquire the 1.5 million tonne cement crushing unit of My Home Group in Tuticorin, Tamil Nadu for Rs 413.75 crore.
The acquisition is expected to strengthen the company's footprint across the southern markets of Tamil Nadu and Kerala.
The facility is spread over 61 acres and is conveniently located near the Tuticorin port, with long-term fly ash contracts increasing its value from the outset, the company said in a statement.
Additionally, limestone availability in Tamil Nadu is limited and the coastal movement of clinker from the Sangipuram mill ensures cost-effective operations, providing a unique competitive advantage. the statement added.
Ajay Kapur, CEO of Adani Group's Cement Business Unit, said, „We are strengthening our foothold in the region and are fully in line with our commitment to provide quality products and services to our customers. We are pleased to announce this acquisition.“ Ambuja Cements will take advantage of its infrastructure and geographic advantage, inherit its existing dealer network, and retain its current workforce to facilitate a smooth transition and enable rapid expansion. Masu. ”
Ambuja Cements reported standalone net profit for Q3FY24 at Rs 513.69 crore, registering a 39.2% increase from Rs 368.99 crore in the year-ago period.
Ambuja Cements' standalone operating revenue for Q3FY24 increased by 7.5% year-on-year to Rs 4,439.5 million from Rs 4,128.5 million. Sales volume increased to 8.2 million tons from 7.7 million tons in the same period last year.
At the operating level, earnings before interest, tax, depreciation and amortization (EBITDA) for the December quarter increased by 33% from Rs 638.2 million to Rs 851.1 million, while EBITDA margin improved by 370 basis points (bps) to 19.2 million. %. From 15.5% year-on-year.
Ambuja Cements Limited is one of India's leading cement companies. Ambuja, along with its subsidiaries ACC Ltd and Sanghi Industries Ltd, has taken Adani Group's cement production capacity to 78.9 MTPA with 18 integrated cement manufacturing plants and 19 cement grinding units across the country.