Ambuja Cements, the cement and building material company of Adani Group, has signed an agreement to acquire My Home Group’s 1.5 mtpa (million tonne per annum) cement grinding unit in Tuticorin in Tamil Nadu.
The acquisition is estimated at a total value of £41.37 mn and will be met through internal accruals.
The deal will help in enhancing Ambuja’s coastal footprint across Southern markets of Tamil Nadu and Kerala, the company said in a statement. JM Financial Limited acted as exclusive financial advisor to MHIPL on this transaction, according to the company.
Telangana based My Home Group has diversified business interests and the said cement unit is spread across 61 acres near the Tuticorin Port. “The limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations,” the company 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,” Ajay Kapur, CEO of Cement Business, Adani Group, said.
The total cement capacity of Adani Group stands at 78.9 mtpa.
