Gautam Adani will acquire ‘grinding’ unit

Gautam Adani: Ambuja Cements, part of Indian industrialist Gautam Adani’s group.Ambuja Cements) It’s a big deal. It is being told that the company will acquire the cement ‘grinding’ unit of My Home Group in Tuticorin, Tamil Nadu for a total of Rs 413.75 crore. Ambuja Cements, part of Adani Group, said in a statement on Monday that it has signed a definitive agreement to acquire the cement ‘grinding’ unit of My Home Group. The capacity of the unit is 1.5 MTPA. According to the statement, the acquisition through internal accruals for a total consideration of Rs 413.75 crore will help the company expand its coastal reach in the southern markets of Tamil Nadu and Kerala.

What did the company say?

Ajay Kapoor, Chief Executive Officer (CEO) of Adani Group’s cement business, said that apart from infrastructure and geographical advantages, Ambuja Cements will also get the existing dealer network. The company will retain current employees which will help in smoothly carrying out this change. According to the information given by the company in its exchange filing, this acquisition will help Ambuja Cement to expand its business in the southern markets of Tamil Nadu and Kerala. After this acquisition, the total cement production capacity of Adani Group will be 78.9 MTPA. However, the country’s largest cement producing company is Aditya Birla Group company UltraTech. The company has recently crossed 150 MTPA production capacity. However, Ambuja Cement has an excellent reputation among the dealers. Post the acquisition, Adani Group will also retain existing employees.

Where are the grinding units?

The cement ‘grinding’ unit of My Home Group is spread over 61 acres of land near Tuticorin Port. Earlier in the month of August last year, Adani Group had acquired Sanghi Cements worth Rs 5,000 crore. Adani Group funded this deal through its internal sources. After this, Ambuja Cement had 54.51 percent stake in the company.

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How one company acquires another company

For a company to acquire another company (merger and acquisition), the two companies first negotiate. The boards of directors of both companies agree to an agreement to plan the acquisition. In this, details of acquisition, time limit, valuation of property, stock currency etc. are adjusted. Once the plan is made and agreed upon, Naubat (Form 23C and Form 1 Naubat) is issued. This includes the process and details of the acquisition. After issuing Naubat, it is presented to the Supreme Court or the Naubat Approval Officer. After receiving the approval, implementation of the acquisition is started as per the plan. In this, one company acquires control of the property, stock, and assets of another company. Following the acquisition, the various process, production, finance, and management systems of both companies are integrated. The various divided structures are transformed into a consolidated and organized structure.