On October 22, 2024, the CK Birla Group signed decisive agreements to transfer its entire shareholding in Orient Cement Ltd. to Adani Group’s Ambuja Cements. The deal values the company’s equity at ₹8100 crore (USD 964 million), setting the price at ₹395.4 per share.
Despite this news, Orient Cement’s stock price fell by 1.32% on the BSE.
CK Birla, Chairman of Orient Cement and CK Birla Group, expressed pride in the company’s growth and achievements. He emphasized that the CK Birla Group is consistently shifting its capital towards businesses that are consumer-focused, technology-driven, and service-oriented. I take immense pride in Orient Cement’s successful development of premium brands and its leading market share. With its strong focus on cement and infrastructure, we believe Adani Group will be the perfect owner to drive Orient Cement’s continued growth for our people and stakeholders.”
Amita Birla, Co-Chairperson of the CK Birla Group, expressed her optimism by stating, “Orient Cement has established a strong market presence, with sustainability, especially in renewable energy, being central to its values. I am confident that Ambuja Cements will offer a promising future for both our employees and customers.”
Karan Adani, the Full-Time Director of Ambuja Cements, characterized the acquisition as a pivotal milestone in the company’s rapid expansion journey. He highlighted that in just two years, Ambuja has expanded its cement capacity by 30 MTPA (Million Tonnes Per Annum). With the acquisition of Orient Cement, Ambuja is poised to reach a capacity of 100 MTPA by FY25. This deal will also enhance Adani Cement’s presence in key markets and boost its market share by up to 2% nationwide.
The transaction is still pending regulatory approvals, which include obtaining clearance from the Competition Commission of India and fulfilling the required open offer obligations as per SEBI regulations.
This acquisition intensifies the fierce competition between the Aditya Birla Group and the Adani Group, as they vie for the top spot in India’s cement industry. Currently, UltraTech Cement, part of the AB Group, holds the position as the largest cement producer.
Chandrakant Birla, a member of the extended Birla family, was formerly in charge of Hindustan Motors, the company that manufactured the iconic Ambassador cars, which was founded by his grandfather.
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