2024-08-18 02:55:52
New Delhi: Adani Group Chairman Gautam Adani has expanded his presence in the southern part of the country. Adani’s company Ambuja Cements has completed the acquisition of Penna Cement Industries. With this acquisition, Penna Cement Industries has now become a wholly owned subsidiary of Ambuja Cements. Let us tell you that the Board of Directors of Ambuja Cements had approved the purchase of 100 percent stake in Penna Cement in June. This deal was done for Rs 10422 crore.
Penna Cement Industries is a big company in the South. After the completion of this acquisition, it is believed that Adani will strengthen his hold in the South as well. After the completion of this acquisition, the share of Adani Group in the cement market of the entire India has increased by 2%. At the same time, the share in South India has increased by 8 percent.
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Target of 140 MTPA by the year 2028
Penna Cement’s current cement production capacity is 14 million tonnes per annum (MTPA). Of this, 10 MTPA is already operational. Adani Cement wants to achieve a target of 140 MTPA capacity by the year 2028. It is believed that this acquisition will prove to be a big step in achieving this target. According to experts, the acquisition of this company will not only help the Adani Group to strengthen its presence in South India, but it will also be able to enter the Sri Lankan market.
Penna Cement has a hold in these states
Penna Cement has a production capacity of 14 million tonnes per annum in Andhra Pradesh, Telangana and Rajasthan (under construction). Apart from this, the Jodhpur plant will also provide 3 MTPA cement production capacity. Adani Group had said in a statement that it will also strengthen the maritime transport logistics of the Adani Group with five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi and Colombo.
What is the company’s plan?
Adani Group is rapidly expanding its presence in the cement sector. It is also eyeing Gujarat-based company Saurashtra Cement, cement business of Jaiprakash Associates and ABG Shipyard’s company Vadraj Cement. Adani Group’s goal is to increase capacity and become the country’s largest cement company by defeating Aditya Birla Group’s UltraTech in the next three to four years. The group currently has three cement companies. These include Ambuja, ACC and Sanghi Cement. Now Penna Cement has also come into its kitty.