Ambuja Cements, a part of Adani Cement, on Friday informed exchanges that it has incorporated three new wholly-owned subsidiary companies to support the leasing of aircraft as well as to manufacture cement, RMX, and allied products. The names of the companies are Lotis IFSC Private Limited, Ambuja Concrete North Private Limited, and Ambuja Concrete West Private Limited. Ambuja Cements owns 100% equity in these three wholly-owned subsidiaries.
Lotis IFSC Private Limited has been formed with an authorised capital of ₹1.7 crore, comprising 17,00,000 equity shares of ₹10 each. Located in GIFT City, Gandhinagar, Gujarat, the company will carry on the business of owning and leasing of aircraft.
Meanwhile, Ambuja Concrete North Private Limited and Ambuja Concrete West Private Limited have been incorporated with an authorised capital of ₹1 lakh each, comprising 10,000 equity share of ₹10. Both the Gujarat-based companies will carry on the business of manufacturing and dealing in cement, RMX and allied products and by-products.
As per the exchange filing, the promoter group does not have any interest other than as above mentioned.
Last month, Ambuja Cement announced acquisition of Gujarat-based Sanghi Industries at an enterprise value of ₹ 5,000 crore. As part of the deal, Ambuja Cements will acquire 56.74% shares of Sanghi Industries from its existing promoter group, Ravi Sanghi & family. Sanghi Industries integrated manufacturing unit at Sanghipuram in Gujarat’s Kutch district is India’s largest single-location cement and clinker unit by capacity.
Sanghi Industries also has a bulk cement terminal each at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra. Most of the cement is transported through the sea route. The cement producer has a network of 850 dealers, with market presence in Gujarat, Madhya Pradesh, Rajasthan, Maharashtra and Kerala.
As per the company, the acquisition of Sanghi Industries will help Ambuja strengthen its market leadership and increase its cement capacity to 73.6 million tonnes per annum (MTPA) from the current 67.5 MTPA. With the ongoing capital expenditure of 14 MTPA and with commissioning of 5.5 MTPA capacity at Dahej and Ametha by Q2 of FY24, the Adani Group’s capacity will be 101 MTPA by 2025.
In Q1FY24, Ambuja Cements posted 31% year-on-year growth in consolidated net profit at ₹1,135 crore as against ₹865 crore in the corresponding quarter of the previous year. Revenue from operations rose 8.4% year-on-year to ₹8,713 crore in the April-June quarter as against ₹8,033 crore in the year-ago period.