New Delhi:

Billionaire Gautam Adani’s family infused an additional Rs 8,339 crore into Ambuja Cements, raising its stake in the company to 70.3%, to help the cement maker’s manufacturing capacity.

The Adani family had previously invested Rs 5,000 crore in the company on October 18, 2022, and Rs 6,661 crore on March 28, 2024. With the latest investment, it has completed the planned Rs 20,000 crore infusion, the company said in a statement.

“The promoters of the company – Adani family – has fully subscribed to the warrants program in the company by further infusing Rs 8,339 crore, thereby infusing a total amount of Rs 20,000 crore,” it said.

The latest infusion raises the Adani family stake in Ambuja Cement by 3.6% to 70.3%.

In all, its holding in Ambuja Cement has increased from 63.2% to 70.3%.

The fund infusion will help Ambuja accelerate its growth ambitions to almost double its existing capacity to 140 million tonnes per annum by 2028 from 76.1 million tonnes as of December 31.

“With this, promoters have further strengthened Ambuja post-acquisition, giving Ambuja capital flexibility for accelerated growth, capital management initiatives and best-in-class balance sheet strength to accomplish its various strategic initiatives,” the statement said.

In 2022, the Adani group entered the cement sector with a $10.5 billion deal to buy Ambuja and ACC from Swiss giant Holcim.

“This strategic move underscores unwavering commitment to have a robust capital management philosophy for the portfolio companies, and the latest investment testifies the commitment by the Adani family to boost future prospects and potential of cement vertical.

“The additional investment will fortify the company’s financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalise on emerging opportunities in the market,” the statement said.

Besides boosting capacity expansion, the funds infusion would also enable various strategic initiatives, including debottlenecking capex, to enhance operational performance, as well as bringing efficiencies across resources and supply chain, Ambuja Cement said, adding that it shall also drive innovation and product enhancement through advanced technology integration for better service offerings to tap the growing requirements of the sector driven by the growth in the Indian economy.

“We are thrilled to announce the completion of the Adani family’s primary infusion of Rs 20,000 crore in Ambuja,” said Ajay Kapur, CEO of Ambuja Cements Ltd.

“This infusion of funds provides Ambuja, capital flexibility for fast-tracked growth, capital management initiatives and best-in-class balance sheet strength. It is not only a testament to a steadfast belief in our vision and business model but also reinforces our commitment to delivering long-term sustainable value creation to our stakeholders, and this shall propel us towards setting new benchmarks, accelerating our growth, and continuing to deliver on operational excellence, business synergies and cost leadership.”

Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisors for the transaction.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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| Photo Credit: Reuters

Ambuja Cements on April 15 said it will acquire My Home Group’s cement grinding unit at Tuticorin in Tamil Nadu for a total value of ₹413.75 crore.

The company — a part of the Adani Group — has signed a definitive agreement to acquire the cement grinding unit of the My Home Group, which has a capacity of 1.5 MTPA, Ambuja Cements said in a statement.

“The acquisition estimated at a total value of ₹413.75 crore through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerala,” it added.

The total cement capacity of Adani Group stands at 78.9 MTPA, the company 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 utilisation,” Ajay Kapur, CEO, Cement Business, Adani Group, said.

The grinding unit is spread across 61 acres near the Tuticorin Port with a long-term fly ash agreement. It will be value accretive from the beginning, the statement said, adding that Ambuja Cements will leverage the coastal footprint.

This acquisition provides access to southern market customers.

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, as per the statement.

New Delhi:

Ambuja Cements Ltd on Wednesday reported a multifold increase in consolidated net profit at Rs 987.24 crore for the quarter ended on September 30, on reduction in operating cost.

The company, now part of the Adani Group, had clocked a net profit of Rs 51.30 crore in the July-September quarter a year-ago, according to a regulatory filing by Ambuja Cements.

Its consolidated revenue from operations was up 4.10 per cent to Rs 7,423.95 crore during the quarter under review. It was Rs 7,131.39 crore in the corresponding period of the last fiscal year.

“This could be achieved with high focus on cost leadership, business synergies and operational excellence,” said an earning statement from Ambuja Cements.

The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd, in which it owns around 51 per cent stake.

Ambuja Cements’ total expenses were down 8.52 per cent at Rs 6,564.28 crore, from Rs 7,175.81 crore a year ago.

Its total consolidated revenue in the September quarter was up 9.1 per cent to Rs 7,900 crore.

On a standalone basis, Ambuja Cements reported a four-fold jump in net profit to Rs 643.84 crore in the July-September quarter, as against Rs 138.91 crore in the year-ago quarter.

Its standalone revenue from operations increased 8 per cent to Rs 3,969.79 crore, as against Rs 3,675.61 crore earlier.

Shares of Ambuja Cements Ltd on Wednesday were trading at Rs 410.55 on BSE, down 3.29 per cent from previous close.