Adani Group owned-Ambuja Cements on Monday announced that it has signed a definitive agreement to acquire My Home Group’s 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu. The acquisition, it added, is estimated at a total value of Rs 413.75 crore through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerala. The total cement capacity of Adani Group stands at 78.9 MTPA.
“The asset spread across 61 acres of land, 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 regulatory filing.
This acquisition will provide Ambuja Cements access to the southern market customers with an opportunity to experience and instill their trust in the company. Furthermore, the limited availability of limestone in Tamil Nadu presents a competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations.
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.”
JM Financial Limited acted as exclusive financial advisor to MHIPL on this transaction.