This acquisition is fully funded through internal accruals, showcasing ACC’s financial strength and commitment to responsible growth.
> About Acquisition
ACC Limited, a leading force in the Indian cement industry, has solidified its market dominance with a strategic acquisition. By fully acquiring Asian Concretes & Cements Pvt Ltd. (ACCPL) for Rs 775 crore, ACC strengthens its grip on the lucrative North India market and injects 2.8 million tonnes per annum (MTPA) capacity into its portfolio. The acquisition instantly boosts ACC’s cement capacity to 38.55 MTPA, and when combined with its parent company Ambuja Cements, the combined capacity reaches a staggering 76.10 MTPA. This strategic manoeuvre also perfectly complements Adani Cement’s clinker facilities in North India, creating a synergistic network for optimal efficiency.
The deal encompasses two key assets: a 1.3 MTPA plant in Nalagarh, Himachal Pradesh (where ACC already has a tolling arrangement), and a 1.5 MTPA plant in Rajpura, Punjab. This expands ACC’s reach into Himachal Pradesh, Haryana, and Punjab, opening doors to a vast new customer base. This acquisition is fully funded through internal accruals, showcasing ACC’s financial strength and commitment to responsible growth. Furthermore, Ambuja and ACC possess sufficient clinker to support the Rajpura plant’s current capacity and future expansions, ensuring smooth integration and maximizing efficiency.
> Share Price Movement
Today, the shares of ACC Ltd are trading at Rs 2,343.50, down by 33.85 points or 1.42% from than previous closing of Rs 2,377.35. Today, the share opened at Rs 2,400 and touched intraday highs and lows of Rs 2,400.80 and Rs 2,331 respectively. The share has a 52-week high of Rs 2,486.35 and a 52-week low of Rs 1,593.50.
> About the company
ACC Limited, a subsidiary of Ambuja Cements, is a part of Adani Cement and one of India’s leading producers of cement and ready-mix concrete. It is a member of the diversified Adani Group – the largest and fastest-growing portfolio of diversified sustainable businesses. ACC has 20 cement manufacturing sites, over 82 concrete plants and a nationwide network of channel partners to serve its customers. ACC is counted among the country’s ‘Most Sustainable Companies’ and is recognised for its best practices in environment management and corporate citizenship. With sustainability at the core of its strategy, ACC is the first Indian cement company to sign the net zero pledge with science-based targets.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.