The cement maker stated that it has entered into a binding agreement to acquire 100% stake in PCIL, moving towards its target capacity of 140 MTPA by 2028.

Under the agreement, Ambuja will buy 100% of PCIL’s shares from its existing promoter group, P. Pratap Reddy and family. The acquisition will be fully funded through internal accruals.

PCIL has 14 MTPA cement capacity, of which 10 MTPA is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA) and will be completed within 6 to 12 months.

Around 90% of the cement capacity comes with railway sidings, and some are supported by captive power plants and waste heat recovery systems. Further, surplus clinker at the Jodhpur plant will support an additional 3 MTPA cement grinding capacity over and above 14 MTPA, it added.

The acquisition is in line with the company’s strategy to increase its footprint in the cement manufacturing market and it is expected to be completed within 3-4 months.

Ajay Kapur, CEO & whole time director of Ambuja Cement, said, “By acquiring PCIL, Ambuja is poised to expand its market presence in south India and reinforce its position as a pan-India leader in the cement industry. PCIL’s strategic location and sufficient limestone reserves provide an opportunity to increase cement capacity through debottlenecking and additional investment.

Importantly, the bulk cement terminals (BCTs) will prove to be a gamechanger by giving access to the eastern and southern parts of peninsular India, apart from an entry to Sri Lanka, through the sea route. Our aim is to make PCIL highly competitive on cost and productivity and improve its operating performance.”

Ambuja Cements is a major cement producing company in India. The principal activity of the company is to manufacture and market cement and clinker for both domestic and export markets.

The cement major’s consolidated net profit surged 63.61% to Rs 1,055.16 crore in Q4 FY24 as against Rs 644.94 crore recorded in Q4 FY23. Revenue from operations was at Rs 8,893.99 crore in the March quarter, up 11.65% from Rs 7,965.98 crore posted in the same period last year.

The counter hit a record high of Rs 690 in today’s intraday session.