ACC acquires Asian Concretes and Cements

ACC acquires Asian Concretes and Cements
08 January 2024

ACC Ltd, a subsidiary of Ambuja Cements Ltd, has announced that it is acquiring a 55 per cent stake in Asian Concretes and Cements Pvt Ltd (ACCPL) for an enterprise value of INR7750m (US$93.3m). ACC currently holds a 45 per cent stake in ACCPL so this latest deal gives ACC entire ownership of ACCPL, increasing ACC’s cement production capacity to 38.55Mta. 

ACCPL runs 1.3Mta of cement capacity in Nalagarh, Himachal Pradesh, while its subsidiary, Asian Fine Cements Pvt Ltd (AFCPL) has a 1.5Mta cement plant in Rajpura, Punjab. According to ACC, the acquisition has been funded through internal accruals and is designed to help the company and its parent company Ambuja to further bolster its market leadership in the north India market. 

“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, CEO, ACC Ltd. The deal enhances ACC’s cement capacity and progresses Adani Cement’s target of 140Mta capacity by 2028. While ACC has an existing tolling arrangement with the Nalagarh unit, the Rajpura plant’s additional 1.5Mta capacity will cater to a vast customer bases across Himachal Pradesh, Haryana and Punjab. 

Published under Cement News