Ambuja Cements, a subsidiary of Adani Cement and part of the diversified Adani Group, has announced the signing of a binding agreement to acquire Orient Cement Ltd (OCL) at an equity value of Rs 8,100 crore. As part of the acquisition, Ambuja will acquire 46.8 per cent of OCL’s shares from its current promoters and certain public shareholders.
“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,” said Karan Adani, Director, Ambuja Cements. “By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2 per cent.”
Orient Cement boasts a cement capacity of 8.5 MTPA and a clinker capacity of 5.6 MTPA, with statutory approvals in place to further increase capacity. This strategic acquisition enhances Ambuja’s capacity and market presence, particularly with OCL’s assets such as railway sidings, captive power plants, and renewable energy facilities. The deal is set to increase Ambuja’s capacity utilization and operational competitiveness.
CK Birla, Chairman, Orient Cement and CK Birla Group, commented, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer-centric, technology-driven, and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in. 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.”
Echoing this sentiment, Amita Birla, Co-Chairman, CK Birla Group, added, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well as our customers.”
With Orient Cement’s well-distributed dealer network and synergies with the Adani Group’s cement business, the acquisition is expected to further solidify Adani Cement’s footprint across India.