Ambuja Cements, the cement and building material company in the Adani Group, has signed an agreement to acquire My Home Group’s 1.5 MTPA cement grinding unit in Tuticorin, Tamil Nadu for INR 413.75 crore recently.
The acquisition is expected to enhance the company’s footprint across the southern markets of Tamil Nadu and Kerala.
The facility is spread across 61 acres and is conveniently located near the Tuticorin Port with a long-term fly ash agreement will be value accretive from the beginning, the company said in a statement.
Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with the coastal movement of clinker from the Sanghipuram plant ensuring cost-efficient operations, the statement added.
Ajay Kapur, CEO – Cement Business, Adani Group, said, “We are glad to announce this acquisition, strengthening our foothold in the region and aligning perfectly with our commitment to delivering high-quality products and services to our customers. 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.”
Ambuja Cements reported a standalone net profit of INR 513.69 crore for the third quarter of FY24, recording a growth of 39.2 percent from INR 368.99 crore in the year-ago quarter.
Ambuja Cements’ standalone revenue from operations in Q3FY24 increased 7.5 percent YoY to INR 4,439.5 crore from INR 4,128.5 crore. Its sales volume rose to 8.2 million tonnes from 7.7 million tonnes in the same period last year.
At the operational level, the company’s earnings before interest, tax, depreciation and amortization (EBITDA) during the December quarter rose by 33 percent to INR 851.1 crore from INR 638.2 crore, while EBITDA margin improved by 370 basis points (bps) to 19.2 percent from 15.5 percent YoY.
JM Financial Ltd acted as financial advisor to My Home on this transaction.
Source: businesstoday.in