Adani Group has announced an infusion of an additional Rs 8,339 crore into Ambuja Cements Ltd (Ambuja), a prominent entity within the cement and building materials sector. Ambuja Cements stands as the flagship company under the diverse portfolio of the Adani group.
This substantial capital injection underscores the Adani family’s commitment to bolstering Ambuja Cements’ growth trajectory and consolidating its position within the industry. With this infusion, the Adani family reaffirms its strategic vision for Ambuja Cements, positioning it for sustained success in the dynamic landscape of cement and building materials.
The Adani family has demonstrated their unwavering commitment to bolstering their investment in the company by fully subscribing to the warrants programme, infusing an additional Rs 8,339 crore. This brings their total investment in the company to Rs 20,000 crore, resulting in a 3.6 per cent increase in their stake to 70.3 per cent.
Notably, this follows previous investments of Rs 5,000 crore on October 18, 2022, and Rs 6,661 crore on March 28, 2024, which were allocated for the partial issuance of shares, as per a company statement. Emphasizing their strategic approach to capital management, the release highlighted the Adani family’s commitment to enhancing the future prospects and potential of the cement vertical through these investments.
As per the statement, the supplementary investment aims to strengthen the company’s financial standing, empowering it with greater resources to pursue its ambitious expansion strategies and seize emerging prospects within the market. The injected funds are expected to play a pivotal role in realizing the cement vertical’s goal of reaching a capacity of 140 million tonnes per annum by 2028.
Additionally, the infusion will facilitate the implementation of several strategic measures, including debottlenecking capital expenditure aimed at improving operational efficiency and optimizing resources throughout the supply chain. Moreover, it will foster innovation and product enhancement through the integration of advanced technologies, thereby enabling the company to offer superior services tailored to meet the increasing demands of the sector, which are propelled by the burgeoning Indian economy.
Ajay Kapur, Whole Time Director and CEO of Ambuja Cements Ltd, expressed enthusiasm over the completion of the Adani family’s primary investment of Rs 20,000 crore in Ambuja. He highlighted that this infusion of funds equips Ambuja with the financial flexibility necessary for accelerated growth, capital management initiatives, and a robust balance sheet. Kapur emphasized that this investment not only reflects a strong belief in Ambuja’s vision and business model but also underscores their commitment to generating sustainable long-term value for stakeholders.
He further stated that this financial boost will propel Ambuja towards setting new industry standards, accelerating growth, and maintaining operational excellence, business synergies, and cost leadership. Barclays Bank PLC, MUFG Bank, Mizuho Bank, and Standard Chartered Bank served as advisors for the transaction.
Ambuja, in collaboration with its subsidiaries ACC Ltd. and Sanghi Industries Ltd., has significantly bolstered the Adani Group’s cement capacity to 78.9 million metric tonnes per annum (MTPA). This achievement has been realized through the strategic operation of 18 integrated cement manufacturing plants and 19 cement grinding units spread across the nation, underscoring the group’s formidable presence and robust infrastructure within the cement industry.