ACC falls 1.4% after acquiring Asian Concretes & Cements for ₹775 crore

• ACC acquired 55% stake in Asian Concretes and Cements Private along with its subsidiary Asian Fine Cements.
• It had earlier held a 45% stake in the company before the deal.
• The acquisition is fully funded through internal accruals.

Adani group controlled ACC acquired the remaining 55% stake in Asian Concretes and Cements (ACCPL) from its promoter at an enterprise value of ₹775 crore. The EV includes cash & cash equivalent of ₹35 crore.

The ACC stock opened Monday in the red and had slipped 1.4% in trade at the time of publishing as compared to 0.4% slip seen on Nifty50.

Asian Concretes and Cements’ subsidiary Asian Fine Cements is also a part of the acquisition. The subsidiary of Ambuja Cements had held a 45% stake in ACCPL before the deal.

"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, WTD and CEO, ACC.

ACCPL has 1.3 MTPA cement capacity in Nalagarh in Himachal Pradesh, while its subsidiary Asian Fine Cements (AFCPL) has 1.5 MTPA cement capacity in Rajpura, Punjab.

Entire acquisition is funded through internal accruals and will help ACC & its parent company Ambuja to further bolster market leadership in the lucrative North India market.

While ACC has an existing tolling arrangement with the Nalagarh unit, Rajpura plant’s additional 1.5 MTPA capacity will strategically cater to a vast customer base across three states — Himachal Pradesh, Haryana, and Punjab. Notably, ACC and Ambuja Cements possess sufficient clinker to support the Rajpura plant, inclusive of its future expansions.

This acquisition elevates Adani Group’s overall cement capacity to 77.4 MTPA. With ongoing and planned capex investments, the Adani Group's cement capacity is poised to reach 106 MTPA by FY26. The move also aligns with Adani’s Cement Business’ target to achieve 140 MTPA capacity by 2028.