Tuticorin, Apr 15 (KNN) Ambuja Cements, the cement and building material subsidiary of Adani Group, has signed an agreement to acquire My Home Group's 1.5 million tonne per annum (MTPA) cement grinding unit in Tuticorin, Tamil Nadu.

The acquisition, valued at Rs 413.75 crore and funded through internal accruals, will increase Adani Group's total cement capacity to 78.9 MTPA.

The Tuticorin plant, strategically located near the port, is spread across 61 acres and has a long-term fly ash supply agreement for raw material sourcing.

This acquisition will strengthen Ambuja's coastal presence in the southern markets of Tamil Nadu and Kerala, enabling efficient delivery of high-quality products.

"This acquisition provides access to the southern market customers with an opportunity to experience and instil their trust in one of the most iconic and trusted brands – Ambuja Cement," said Ajay Kapur, CEO – Cement Business, Adani Group, reported fortune.

"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", he added.

In addition to inheriting the existing dealer network and retaining current employees for a smooth transition, Ambuja Cements will leverage the coastal infrastructure and marine equipment at the Tuticorin unit.

This acquisition comes on the heels of Ambuja's recent purchase of Gujarat-based Sanghi Industries Limited for Rs 5,185 crore in December 2022.

With subsidiaries ACC Ltd. and Sanghi, Ambuja now has a cement capacity of 78.9 MTPA across 18 integrated cement manufacturing plants and 19 grinding units nationwide.

The Adani Group aims to achieve 101 MTPA cement capacity by 2025 and 140 MTPA by 2028 through organic and inorganic growth strategies.

(KNN Bureau)