Adani Group Ambuja Cements acquires 47 pc stake in Orient Cement for Rs 8 100 crore Bilkul Online

The Acquisition and Its Implications

The acquisition of OCL by Ambuja Cement is a significant development in the Indian cement industry. The deal will see Ambuja acquire 46.8 per cent shares of OCL from its current promoters. This acquisition is expected to enhance Ambuja’s market share and position the company as a major player in the Indian cement industry. Key highlights of the acquisition:

Ambuja will acquire 8 per cent shares of OCL
The acquisition will be fully funded through internal accruals
Ambuja is poised to reach 100 MTPA cement capacity in FY25

The Benefits of the Acquisition

The acquisition of OCL by Ambuja Cement is expected to bring several benefits to the company. Some of the key benefits include:

Enhanced market share: The acquisition will enable Ambuja to increase its market share in the Indian cement industry, making it a more competitive player. Increased capacity: The acquisition will also enable Ambuja to increase its cement production capacity, which will help the company to meet the growing demand for cement in the country. Improved financials: The acquisition is expected to improve Ambuja’s financials, as it will enable the company to increase its revenue and reduce its costs. ## The Future Outlook*

The Future Outlook

The acquisition of OCL by Ambuja Cement is expected to have a positive impact on the company’s future outlook.

Overview of OCL

The Orissa Cement Limited (OCL) is a leading cement manufacturer in India, with a rich history dating back to 1948. The company has been a major player in the Indian cement industry for over seven decades, with a strong presence in the eastern region of the country.

History of OCL

OCL was established in 1948 by the Government of Orissa, with the primary objective of producing cement for the state’s infrastructure development. Over the years, the company has undergone significant expansions and modernizations, enabling it to increase its production capacity and improve its product quality.

Expansion and Modernization

In the 1980s, OCL began to expand its production capacity, with a focus on increasing its clinker capacity. The company invested heavily in new technology and equipment, which enabled it to increase its clinker production from 1.5 MTPA to 5.6 MTPA. Similarly, the company also expanded its cement capacity, increasing it from 2.5 MTPA to 8.5 MTPA.

Current Capacity and Expansion Plans

As of 2022, OCL has a clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA.

This concession allows OCL to establish a Grinding Unit, which will be used to produce cement clinker, a critical component in cement production.

Setting Up the Grinding Unit

The Grinding Unit will be set up within the premises of the Satpura Thermal Power Plant, which is owned by MPPGCL. This strategic location will enable OCL to take advantage of the existing infrastructure and reduce costs associated with setting up a new facility. Key benefits of setting up the Grinding Unit:

• Reduced costs: By utilizing the existing infrastructure, OCL can reduce its costs associated with setting up a new facility. • Increased efficiency: The proximity to the power plant will enable OCL to transport raw materials and cement clinker more efficiently. • Enhanced productivity: The Grinding Unit will be able to produce cement clinker at a higher rate, increasing productivity and meeting the growing demand for cement. ## Cement Clinker Production

Cement Clinker Production

The Grinding Unit will be used to produce cement clinker, a critical component in cement production. Cement clinker is a fine powder that is used as a raw material in the production of cement.