Displaying items by tag: ACC

India: Adani Group repaid loans worth a total of US$2.65bn on 6 June 2023, with a total interest payment of US$700m. Accord Fintech News has reported that the sum includes prepayment of loans worth US$700m used to acquire Holcim India, alongside other loans. This completes the group's prepayment of loans taken for the acquisition, which it completed in September 2022.

India: Adani Group plans to grow ACC and Ambuja Cements' capacity to 140Mt/yr by 2028 under a joint expansion strategy. The Hindu newspaper has reported that new strategy includes capital expenditure with a value of US$5.58bn and new acquisitions. Investments will reportedly be split equally between the two subsidiaries. After completion of the current growth plan, the cement producers will 'pause for a while' prior to any subsequent expansion phase.

Adani Group said that it is proceeding with an operational merger of ACC and Ambuja Cements, without merging their distinct brands. The priority of the merger will be to increase efficiency in supply chains and logistics operations.

India: ACC has blamed a drop in earnings in the fourth quarter of its financial year on higher fuel prices. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15% year-on-year to US$71.9m in the quarter that ended in March 2023 from US$64.7m in the same period in 2022. However, it said that fuel prices were expected to drop due to synergies with other subsidiaries within Adani Group. It is also working on reducing operational costs by reducing its clinker factor, logistics costs and growing sales of blended cement products. It added that it had reduced its kiln fuel cost by 10% in the fourth quarter by taking the measures mentioned above and by increasing its use of alternative fuels.

The company changed its financial year to one ending in March 2023 during the reporting period. Its calculated net revenue rose by 10% year-on-year to US$2.16bn for its 2023 financial year that ended on 31 March 2023 compared to US$1.97bn in the previous 12 months. Its cement and clinker sale volumes grew by 6% to 31Mt from 29Mt.

Ajay Kapur, the chief executive officer of ACC, said “Our transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators. We have a detailed blueprint on each of the cost factors and initiatives to reduce and improve.”

India: Adani Cement has appointed Praveen Garg appointed as its Chief Logistics Officer. He previously worked for Vicat for over a decade in a variety of logistics roles. Before this he worked for ACC in logistics and shipping positions. Garg is a graduate of the Indian Institute of Management in Calcutta and the Indian Institute of Technology in Kharagpur.

India: ACC’s Jamul, Thondebhavi and Tikaria cement plants have won safety prizes at the National Safety Council of India (NSCI)’s Safety, Health and Environment Convention (SHECON) 2023. Press in attendance reported that the 1.6Mt/yr Thondebhavi plant in Karnataka won a safety award and a bronze trophy for implementation of its occupational safety and health (OSH) plan. Meanwhile, the 1.6Mt/yr Jamul plant in Chhattisgarh won a letter of commendation and the 3Mt/yr Tikaria grinding plant in Uttar Pradesh won a certificate of recognition.

Adani Group’s cement business CEO Ajay Kapur said "We are honoured to have been recognised by the NSCI with three prestigious awards for our commitment to ensuring the safety and well-being of our employees, and we are proud to be recognised for our efforts. With a strong emphasis on occupational health and safety, we have a robust safety management system in place."

India: Adani Group is legally ‘paving the way’ for an eventual merger of its cement subsidiaries ACC and Ambuja Cements into Adani Cement. The Hindu BusinessLine News has reported that the merger is not likely to reach completion before April 2024.

Adani Group holds a 63% stake in Ambuja Cements, which in turn holds a 50% in ACC. Adani Group additionally holds a 6.7% direct stake in ACC.

India: Adani Group says that it will raise funds for its 2028 capacity expansion plan through internal accruals. The producer plans to double its cement capacity to 140Mt/yr by 2028, and also double its sales to US$8.5bn that year. The Financial Express newspaper has reported that the group says its internal accruals will be 'sufficient' to realise its aims. The group is reportedly 'on track' to commence the first phase of the planned expansion in early-mid-2023. It has also set out a cost reduction roadmap with a view to becoming India's most profitable cement company.

Chair Gautam Adani says that he anticipates a 'multi-fold rise' in all-Indian cement consumption due to forecast high economic growth and the government's infrastructure spending plans.

India: Adani Group has reportedly relocated 'significant roles' in ACC and Ambuja Cements to Ahmedabad, Gujarat. ACC and Ambuja Cements' headquarters are situated in Mumbai, Maharashtra, and employ 6000 and 4700 people respectively. The Business Standard newspaper has reported that many people in leadership positions now based in Ahmedabad continue to run teams in Mumbai.

India: Adani Group is rumoured to have entered negotiations to extend the repayment duration of its US$4bn loan for the acquisition of Holcim's Indian business. The group secured the funds in August 2022. The Economic Times newspaper has reported that the group is seeking to extend the duration of its repayments from 18 months to at least five years. It is reportedly also seeking a similar extension for a parallel US$1bn mezzanine loan tranche.

Adani Group described the rumour as 'incorrect.'

India: Adani Group told investors that it repaid a US$500m bridge loan for its acquisition of ACC and Ambuja Cements on 7 March 2023. The deal was completed in September 2022, and payment on the loan was due by 9 March 2023 at the latest. UK-based Barclays and Standard Chartered and Germany-based Deutsche Bank underwrote the loan.

Business Today Online News has reported that Adani Group is seeking to pre-pay its loans in order to allay investor concerns about its debt.