Adani Acquires Orient Cement for Rs 8,100 Crore, Aiming for 100+ MTPA Capacity by FY25

Ambuja Cements, part of the Adani Group, announced on Tuesday that it has signed a binding agreement to acquire a 46.8% stake in Orient Cement Ltd (OCL) for ₹8,100 crore. This acquisition is a significant move towards Ambuja’s objective of achieving a cement capacity of 140 million tonnes per annum (MTPA) by 2028.

The deal will be fully financed through Ambuja’s internal funds, ensuring the company maintains its debt-free status. Following the acquisition, Ambuja’s cement capacity is expected to increase by approximately 30 MTPA within two years, positioning the company to reach an operational capacity of 100 MTPA by FY25.

This acquisition will also enhance Adani Cement’s market presence, adding an estimated 2% to its existing share in the Indian cement industry. OCL currently operates with a clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA, alongside a diverse asset portfolio that includes a 95 MW captive power plant, a 10 MW waste heat recovery system, and 33 MW of renewable energy across Telangana, Karnataka, and Maharashtra.

Karan Adani, Director of Ambuja Cements, remarked, “This acquisition represents a significant step in Ambuja’s growth trajectory, increasing our cement capacity by around 30 MTPA within two years. By acquiring OCL, we are well-positioned to reach our target of 100 MTPA by FY25, expanding our presence in core markets.”

He further noted that OCL’s efficient assets, which include railway sidings and renewable energy capabilities, along with high-quality limestone reserves and necessary regulatory approvals, present an opportunity to boost cement capacity to 16.6 MTPA.

OCL has also secured permission from Madhya Pradesh Power Generating Company Ltd to establish a 2.0 MTPA grinding unit at the Satpura Thermal Power Station in Sarni, Madhya Pradesh. Additionally, its limestone mining lease in Chittorgarh, Rajasthan, opens pathways for developing another 6 MTPA of cement capacity in North India.

CK Birla, Chairman of Orient Cement and the CK Birla Group, expressed confidence in the transition, stating, “The CK Birla Group is focusing on consumer-centric, technology-driven businesses. I take pride in Orient Cement’s strong market presence and am confident that the Adani Group will drive continued growth for Orient Cement.”

Amita Birla, Co-Chairman of the CK Birla Group, added, “Orient Cement’s commitment to sustainability and renewable energy aligns well with Ambuja Cements, making it an ideal home for our employees and customers.”

OCL has recently commissioned a waste heat recovery system in Chittapur and is finalizing the installation of solar energy systems in Chittapur and Jalgaon. The efficient operations, motivated teams, and well-established dealer network of OCL will complement Adani Group’s existing cement business, with OCL’s dealers transitioning to Adani Cement’s market network to create significant synergies.

Ambuja plans to optimize OCL’s capacity utilization to enhance competitiveness and operational performance, leveraging synergies across its cement operations.