Adani Group’s Cements Acquires 47% Stake in Orient Cement for ₹8,100 Crore

Ambuja Cements, part of the diversified Adani Group, has announced its acquisition of a 46.8% stake in Orient Cement Ltd (OCL) for an equity value of ₹8,100 crore. The purchase will be funded entirely through internal resources, as stated by the company.

This acquisition enhances Ambuja’s existing cement operations by reducing logistics costs and lead distances, while also boosting its market share in core regions. Karan Adani, Director of Ambuja Cements, highlighted that this strategic move marks a significant milestone in the company’s growth trajectory, increasing cement capacity by 30 million tonnes per annum (MTPA) within two years of Ambuja’s own acquisition.

“With the acquisition of OCL, Ambuja is set to reach a total cement capacity of 100 MTPA by FY25. This will expand Adani Cements’ presence in key markets and enhance its overall market share by 2%,” Karan Adani noted.

OCL operates with a clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA, along with permissions to expand clinker capacity by an additional 6.0 MTPA and cement capacity by 8.1 MTPA. OCL also possesses a limestone mining lease in Chittorgarh, enabling the establishment of an Integrated Unit with a clinker capacity of 4 MTPA and a split Grinding Unit of 6 MTPA in North India.

“OCL’s efficient assets, which include railway sidings and supportive infrastructure like captive power plants and renewable energy sources, position it well for future growth. The strategic locations and high-quality limestone reserves provide a strong opportunity to increase cement capacity to 16.6 MTPA in the near term,” Karan Adani added.

OCL has also secured a concession from MPPGCL in Madhya Pradesh to set up a Grinding Unit at the Satpura Thermal Power Plant, further complementing the Adani Group’s cement operations.

CK Birla, Chairman of Orient Cement and the CK Birla Group, expressed confidence that the Adani Group’s strong focus on cement and infrastructure makes them the ideal partner to drive continued growth at Orient Cement for all stakeholders involved.

With subsidiaries such as ACC Ltd, Penna Cement Industries Ltd, and Sanghi Industries Ltd, Ambuja’s acquisition brings the Adani Group’s total cement capacity to 88.9 MTPA, supported by 20 integrated manufacturing plants, 20 grinding units, and 12 bulk terminals across India.