Ambuja Cements Ltd (ACL), the country?s second largest cement producer in which Swiss giant Holcim holds 46% stake, is actively looking at the inorganic route to expansion and open for acquisitions.
Speaking to FE , AL Kapur, managing director, ACL said, ?Times are good. If there is an opportunity, then there should be some acquisition. We will keep an eye on opportunities.?
Asked whether Ambuja has short-listed some companies for acquisition, Kapur said, ?They are always in mind, and we don?t have to short-list them.?
The company emphasises on diverse geographical presence and is looking at targets in Andhra Pradesh, Madhya Pradesh and some companies in the North.
?We will look at all the ways. It all depends on how you strike the deal,? he adds.
Declining to share any further specifics on this, Kapur said, ?We have plenty of cash reserves, money is not a problem. The balance sheets of Holcim, ACC Ltd and Ambuja Cements are very strong.?
On July 25, ACL shares were down 1.20% to close at Rs 82.10 on the Bombay Stock Exchange.
According to Kapur, the cement industry has started slowing down, prices are under pressure. Those balance sheets with large debts will find it difficult to service such debt, resulting in cash flow problems. Hence, that will be the time to spot and pursue buys.
On the organic front, ACL is all set to add 6 million tonne to its current 20 million tonne by 2009 with a total cost of Rs 3,500 crore. The company is also targeting to reach 35 million a year capacity in the next five years.
