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HomeEnglishAmbuja To Buy Tn Cement Biz Of My Home In ₹414cr Deal...

Ambuja To Buy Tn Cement Biz Of My Home In ₹414cr Deal | India Business News – Times of India


MUMBAI/HYDERABAD: Ambuja Cements has agreed to buy a cement grinding unit in Tamil Nadu from My Home Group for about Rs 414 crore, which will enhance its footprint in the southern market. This will be Ambuja Cements’ third purchase after Adani Group became its owner. Its previous buys were Sanghi Industries and Asian Concretes and Cements (this was bought by Ambuja Cements’ subsidiary ACC).
My Home’s cement grinding unit in Tuticorin, Tamil Nadu, with an annual capacity of 1.5 million-tonne, will take Ambuja’s total capacity to 78.9 million-tonne, consolidating its position as India’s second-largest player after Aditya Birla Group’s UltraTech Cement. The dealAmbuja Cements said, will be financed through internal accruals. It will also retain the unit’s 70 employees, the company, helmed by Ajay Kapur, added.
The diversified construction-to-media My Home Group is owned by Hyderabad-based billionaire businessman Jupally Rameswar Rao. Once the sale of the Tamil Nadu unit is concluded, the group will be left with three cement plants in Telangana and Andhra Pradesh. It produces 11 million-tonne of building materials annually, which is marketed under the Maha Cement brand. It runs the cement business in equity partnership with Irish major CRH.
The group also owns TV9 news channels along with Megha Engineering, which hit headlines for being the second biggest buyer of electoral bonds worth Rs 966 crore.
A source said the group’s decision to sell the Tuticorin unit was driven primarily by commercial reasons. The unit was not performing well as it is located far from the core markets it caters to (like Telangana, Andhra Pradesh and Odisha), thus resulting in higher freight costs.
The Tuticorin plant, spread across 61 acres of land, has a long term fly ash supply agreement for raw material sourcing, Ambuja said.


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