.jpg)
Synopsis : Ambuja Cements, under Adani Group, buys My Home Group's Tuticorin unit, enhancing presence in Tamil Nadu and Kerala.
Ambuja Cements, a subsidiary of the Adani Group, has recently finalized an agreement to acquire My Home Group's 1.5 MTPA cement grinding unit situated in Tuticorin, Tamil Nadu, for a sum of Rs 413.75 crore. This strategic move is anticipated to strengthen Ambuja's foothold in the markets of Tamil Nadu and Kerala. Covering an area of 61 acres and strategically positioned near Tuticorin Port, the facility is poised to offer immediate value addition, especially with a long-term fly ash agreement in place. Moreover, its advantageous location, coupled with the scarcity of limestone in Tamil Nadu, presents a distinctive competitive edge.
Ajay Kapur, CEO of the Cement Business at Adani Group, expressed his satisfaction with the acquisition, emphasizing its alignment with their commitment to delivering top-notch products and services. Furthermore, Ambuja Cements is set to inherit the existing dealer network and retain current employees, ensuring a smooth transition and enabling swift utilization ramp-up.
In the third quarter of FY24, Ambuja Cements reported a standalone net profit of Rs 513.69 crore, marking a notable 39.2% increase compared to the previous year. Standalone revenue from operations for Q3FY24 also witnessed a healthy uptick of 7.5% year-on-year, amounting to Rs 4,439.5 crore, with sales volume reaching 8.2 million tonnes. At the operational level, the company recorded a significant 33% surge in earnings before interest, tax, depreciation, and amortization (EBITDA) during the December quarter, rising to Rs 851.1 crore from Rs 638.2 crore, with an accompanying improvement in EBITDA margin by 370 basis points (bps) to 19.2% from 15.5% YoY.
Ambuja Cements Limited, alongside its subsidiaries ACC Ltd and Sanghi Industries Ltd, contributes to the Adani Group's total cement capacity of 78.9 MTPA, spanning 18 integrated cement manufacturing plants and 19 cement grinding units across the country.
