Ambuja Cements, a subsidiary of the Adani Group, has announced a binding agreement to acquire a 46.8% stake in Orient Cement Ltd (OCL) for an equity value of INR 8,100 crore. The acquisition will be fully funded through internal accruals, and the deal aims to accelerate Ambuja’s expansion plans to achieve a cement production capacity of over 100 million tonnes per annum (MTPA) by FY 2025.
Orient Cement has an existing operational capacity of 8.5 MTPA and an additional 8.1 MTPA of ready-to-execute projects, bringing its total potential to 16.6 MTPA. The acquisition is expected to boost Adani Cement’s market share in India by 2% and provide an opportunity for an additional 6 MTPA of capacity in northern India due to OCL’s limestone reserves in Chittorgarh, Rajasthan.
OCL’s facilities include a 5.6 MTPA clinker capacity, supported by 95 MW of captive power and renewable energy installations across its plants in Telangana, Karnataka, and Maharashtra. The company has also secured a concession to establish a 2 MTPA grinding unit within the premises of the Satpura Thermal Power Station in Madhya Pradesh.
Ambuja Cements plans to integrate OCL’s assets with its existing operations to optimize capacity utilization, reduce logistics costs, and enhance competitiveness.