ACC, a cement and building materials company under the ownership of the Adani Group, has recently completed the full acquisition of Asian Concretes and Cements (ACCPL) from its current promoter. This acquisition, valued at Rs 775 crore in terms of enterprise value, is an important step for ACC, which initially held a 45% stake in ACCPL. Following this transaction, ACC has proceeded to acquire the remaining 55%, thereby consolidating complete ownership and control over ACCPL within its portfolio.
ACC Limited (ACC) is one of the key players in India’s building materials sector, with a nationwide operational and marketing footprint. As a member of the Adani Group, a dynamic conglomerate leading in diversified sustainable businesses, ACC is consistently striving to be synonymous with excellence in cement. Established in 2004, Asian Concretes and Cements Pvt. Ltd. (ACL) inaugurated its initial cement grinding unit in Nalagarh, Himachal Pradesh. By 2009, ACL joined forces with ACC Limited. In the same year, ACL had successfully launched its second plant with a capacity of 1 MTPA, contributing to its current total capacity of 1.4 MTPA. ACC possesses a robust 1.3 MTPA cement capacity at Nalagarh, Himachal Pradesh, Asian Concretes and Cements, has 1.5 MTPA capacity in Rajpura, Punjab. Together, these entities strategically position themselves to cater to diverse regional markets. ACC and Ambuja Cements ensure a steady supply of clinker, sustaining the Rajpura plant’s operations and laying a solid foundation for future expansions.
The enterprise value, as per the company’s assessment, encompasses a cash and cash equivalent totaling Rs 35 crore. Utilizing internal accruals exclusively, the entire acquisition is being financed. The company has expressly stated that the comprehensive acquisition is poised to significantly fortify ACC and Ambuja Cements’ dominant presence within the North India market, solidifying their positions as market leaders. “With this acquisition, we are furthering our growth trajectory, enriching our portfolio, and continuing to accelerate our journey towards value creation for all our stakeholders,” said Ajay Kapur, chief executive officer at ACC Ltd. “This strategic move enhances ACC’s cement capacity and progress on the overall target of 140 MTPA capacity of Adani’s Cement Business by 2028,” the company said. The acquisition will be completed in the next seven days,” further comments Mr Kapur.
“This aligns seamlessly with our vision for expansion and serves as a testament to ‘ACC’s Bharosa Atoot’, resonating deeply with our values,” said Mr Kapur. ACC shares are presently trading down by 1.30%, valuing at Rs 2,346.40. Over the course of a year, the stock has experienced a decline of 4.71%. This downturn coincides with an initiative to augment ACC’s cement capacity, aligning with Adani’s broader ambition to achieve a 140 MTPA capacity for their cement business by 2028, marking a significant progression from the current capacity of 77.40 MTPA.
