![]() If the Bloomberg reports are found to be accurate, then it can be concluded that Adani is moving rapidly. From the above data, it shows that Adani has a long way to overcome Ultratech cement, which would remain in the top cement manufacturing industries by FY2025. The plan is to be completed by the end of FY2023. Ultratech cement has a capacity of production accounting for about 120 MTPA and is in the midst of an expansion plan. The recent acquisition of Holcim Ltd made Adani just behind UltraTech in size. The company is spotted behind the UltraTech Cement. /rebates/&252fviber-free-download-for-mac-os-x-1058. Additionally, the company aims to become the largest cement manufacturing industry in India by 2030. Adani group plans to double its capacity of cement production of 140 million tonnes over the next five years, i.e by the end of 2027. What is Adani’s intention behind purchasing stakes of Jaypee associates?Īdani wants to make his name in the cement sector. If the transaction succeeds, it could result in growth optionality and tax benefits. It would add to the company’s capacity in the high-yielding market and turn, would lead to great savings for the Adani group. The research analyst at Investec has stated that the acquisition of the JP associates would increase Adani’s exposure from 8 percent in the present to 22 to 23 percent. The acquisition would reinforce the Adani Group’s exposure to the cement sector in Central India and would, in turn, lead to the growth of the company followed by savings. It is a joint business with the Steel Authority of India Limited (SAIL) and the rest of the capacity is present in Central India.Īdani Group has bought the stakes of Holcim group companies at an EV/T value of 162.7 USD per tonne. JP Associates has 1.2 MTPA in Karnataka and 2.2 MTPA in Bhilai of the total 10.5 MTPA capacity. It has not been informed if all the assets are a part of the acquisition. The valuation made by the Adani Group in the purchase would take the EV/T value to 58 USD per tonne, which is cheaper than the Ambuja-ACC transaction. ![]() The analysis has been made by Ravi Sodah, who works for Elara securities. As compared to the former deals, if one looks at the company’s debt, the value of 5000 crore INR seems justifiable.
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