Ambuja Cements, a subsidiary of Adani Cement and part of the diversified Adani Group, is set to acquire Orient Cement Ltd (OCL) at an equity value of Rs 8,100 crore on Tuesday. Under the terms of the agreement, Ambuja will acquire 46.8% of OCL’s shares from its current promoters and selected public shareholders. The acquisition will be fully financed through internal funds.
“This acquisition represents a significant milestone in Ambuja Cements’ rapid growth trajectory, increasing our cement capacity by around 30 MTPA within just two years of the company’s own acquisition,” said Karan Adani, Director of Ambuja Cements. “Through this acquisition, Ambuja Cements is on track to reach a cement capacity of 100 MTPA by the 2025 financial year. It will expand Adani Cement’s reach in key markets and increase our pan-India market share by 2%. OCL’s efficient assets, complete with railway sidings, captive power plants, renewable energy sources, and other essential facilities, present an opportunity to increase cement capacity in the near term to 16.6 MTPA.”
CK Birla, Chairman of Orient Cement and the CK Birla Group, commented, “The CK Birla Group continues to reallocate capital to focus on consumer-centric, technology-driven, and service-based businesses. I take great pride in Orient Cement’s record of building premium brands and maintaining a strong market position in its operational areas. We are confident that the Adani Group, with its strong emphasis on cement and infrastructure, is well-placed to drive further growth for Orient Cement’s employees and stakeholders.”
Amita Birla, Co-Chairman of the CK Birla Group, added, “Orient Cement has a solid market presence, with sustainability and renewable energy forming a core part of its operations. I am confident that Ambuja Cements will be a good home for our colleagues and customers.”
OCL currently has a clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA, with statutory approval to increase clinker capacity by an additional 6.0 MTPA and cement capacity by 8.1 MTPA. The company also holds a limestone mining lease in Chittorgarh, which will support an Integrated Unit (IU) with a clinker capacity of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA in North India. OCL has also secured a concession from MPPGCL in Madhya Pradesh to establish a Grinding Unit at the Satpura Thermal Power Plant site, which complements the Adani Group’s existing cement operations.
Recently, OCL has commissioned a Waste Heat Recovery System (WHRS) at its Chittapur IU and is in the final stages of commissioning 16 MW of solar power at Chittapur and 3.7 MW of solar power at its Jalgaon site. With efficient plants, motivated teams, a strong balance sheet, and a well-established dealer network, OCL will be a valuable addition to the Adani Group’s cement business. OCL’s dealer network will transition to Adani Cement’s existing market network, creating substantial synergies.
Ambuja Cements plans to optimise OCL’s capacity utilisation to improve cost efficiency, competitiveness, and operational performance, while leveraging synergies across the broader Adani Cement portfolio.
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