Gautam Adani’s Ambuja expands empire with Rs 8,100 crore Orient Cement acquisition

Ambuja Cements Ltd., owned by the Adani Group, has announced its acquisition of Orient Cement Ltd. for an equity value of Rs. 8,100 crore. This move is part of Ambuja’s ongoing expansion strategy and will add 16.6 million tonnes to its annual production capacity.

The acquisition will be fully funded through internal accruals, according to a filing by the company.

Ambuja will acquire a 46.8% stake in Orient Cement from the promoters and related entities, triggering an open offer to buy an additional 26% stake at Rs. 395.40 per share. The acquisition, which involves CK Birla Group’s cement arm, will help Ambuja reduce logistics costs and strengthen its market presence in core regions.

The deal values Orient Cement’s operational and ready-to-implement capacity at $58 per tonne, significantly lower than the greenfield set-up cost of $110-120 per tonne. The operational capacity valuation is pegged at $113 per tonne. The acquisition is expected to close within three to four months, subject to regulatory approvals.

Karan Adani, Director of Ambuja Cements, noted that this acquisition positions the company to reach 100 million tonnes per annum (MTPA) in cement capacity by the end of the fiscal year. "This will help expand Adani Cements' presence in core markets and improve its pan-India market share by 2%," he added.

Orient Cement currently operates with an 8.5 million tonnes annual capacity, and an additional ready-to-implement capacity of 8.1 MTPA across Telangana, Karnataka, and Maharashtra. This acquisition will drive Ambuja’s target of exceeding 100 MTPA by 2025 and 140 MTPA by 2028.

Market analyst Sunny Agarwal from SBICAP Securities highlighted the positive impact of the deal on both parties, noting that the acquisition price benefits Orient Cement shareholders, while Ambuja gains a foothold in the southern market. "Consolidation in the cement sector is well underway," he said.