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Ambuja Cements on April 15 said it will acquire My Home Group’s cement grinding unit at Tuticorin in Tamil Nadu for a total value of ₹413.75 crore.

The company — a part of the Adani Group — has signed a definitive agreement to acquire the cement grinding unit of the My Home Group, which has a capacity of 1.5 MTPA, Ambuja Cements said in a statement.

“The acquisition estimated at a total value of ₹413.75 crore through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerala,” it added.

The total cement capacity of Adani Group stands at 78.9 MTPA, the company said.

“In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilisation,” Ajay Kapur, CEO, Cement Business, Adani Group, said.

The grinding unit is spread across 61 acres near the Tuticorin Port with a long-term fly ash agreement. It will be value accretive from the beginning, the statement said, adding that Ambuja Cements will leverage the coastal footprint.

This acquisition provides access to southern market customers.

Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations, as per the statement.

New Delhi:

Ambuja Cements Ltd on Wednesday reported a multifold increase in consolidated net profit at Rs 987.24 crore for the quarter ended on September 30, on reduction in operating cost.

The company, now part of the Adani Group, had clocked a net profit of Rs 51.30 crore in the July-September quarter a year-ago, according to a regulatory filing by Ambuja Cements.

Its consolidated revenue from operations was up 4.10 per cent to Rs 7,423.95 crore during the quarter under review. It was Rs 7,131.39 crore in the corresponding period of the last fiscal year.

“This could be achieved with high focus on cost leadership, business synergies and operational excellence,” said an earning statement from Ambuja Cements.

The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd, in which it owns around 51 per cent stake.

Ambuja Cements’ total expenses were down 8.52 per cent at Rs 6,564.28 crore, from Rs 7,175.81 crore a year ago.

Its total consolidated revenue in the September quarter was up 9.1 per cent to Rs 7,900 crore.

On a standalone basis, Ambuja Cements reported a four-fold jump in net profit to Rs 643.84 crore in the July-September quarter, as against Rs 138.91 crore in the year-ago quarter.

Its standalone revenue from operations increased 8 per cent to Rs 3,969.79 crore, as against Rs 3,675.61 crore earlier.

Shares of Ambuja Cements Ltd on Wednesday were trading at Rs 410.55 on BSE, down 3.29 per cent from previous close.