Displaying items by tag: Adani Cement

India: Adani Group subsidiary ACC has started commercial clinker production from the kiln of its new Ametha cement plant in Madhya Pradesh’s Katni District. BQ Prime News has reported that the kiln line has a clinker capacity of 3.3Mt/yr. It is capable of co-processing up to 15% alternative fuel (AF). The plant is also equipped with a 1Mt/yr grinding unit and a 16.3MW waste heat recovery (WHR) plant.

The Ametha cement plant raises ACC’s installed cement and clinker capacity by 9.8% to 37Mt/yr.

Nepal/India: Chaudhary Group has signed a memorandum of understanding (MoU) for a strategic partnership with India-based conglomerate Adani Group. According to the MoU, Adani Group will support the Nepal-based cement producer in its distribution of cement into neighbouring states of India.

The Kathmandu Post newspaper has reported that Chaudhary Group’s managing director Varun Chaudhary said "This collaborative effort stands as a pivotal milestone, underlining our commitment to augmenting economic cooperation and trade relations between the two nations.” He added “Through this strategic collaboration, we aspire to fortify the harmonious rapport that characterises the Nepal-India relationship, while actively contributing to the growth and development of the adjoining states."

India: The Organized Crime and Corruption Reporting Project (OCCRP) has obtained documents which allegedly show how two people with close ties to the owners of Adani Group invested significantly in the group. Nasser Ali Shaban Ahli and Chang Chung-Ling traded in Adani Group shares through a Mauritius-based investment fund. The OCCRP reports that Ahli and Chang might be found to have been acting on behalf of Adani promoters. If so, their shareholding would bring insider investment in Adani Group to over 75%. This would potentially indicate stock manipulation under Indian law. Ahli and Changs’ investment management company reportedly paid a company owned by Vinod Adani, the brother of Adani Group chair Gautam Adani, for investment advice.

Nasser Ali Shaban Ahli is a Dubai-based business consultant, who is listed as an officer in a British Virgin Islands-based securities investment firm linked to Adani Group. Meanwhile, China-based Chang Chung-Ling has held positions on the boards of multiple Adani Group companies.

Adani Group replied “Contrary to your claim of new evidence/proofs, these are nothing but a rehash of unsubstantiated allegations levelled in the Hindenburg report. Our response to the Hindenburg report is available on our website. Suffice it to state that there is neither any truth to nor any basis for making any of the said allegations against the Adani Group and its promoters, and we expressly reject all of them."

India: Adani Group recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$2.85bn in the first quarter of the 2024 financial year, up by 42% year-on-year. The conglomerate’s cement business contributed an EBITDA of US$235m, up by 54% year-on-year. This represented 8.2% of the quarterly total. The group sold 15.4Mt of cement.

Financial Express Online News has reported that Adani Group said “The robust portfolio performance was primarily driven by the renewable power business under Adani Green, the infrastructure businesses under Adani Enterprises and the cement businesses under Adani Cement.”

India: Ambuja Cements’ open offer to acquire an additional 26% stake in Sanghi Industries will run from 29 September 2023 to 13 October 2023. Press Trust of India News has reported the value of shares under the offer as up to US$767m. Ambuja Cements concluded a deal to acquire a 57% stake in Sanghi Industries, for the smaller sum of US$603m, on 3 August 2023.

India: Ambuja Cements has concluded a deal to acquire a 57% stake in Sanghi Industries for US$202m. Reuters has reported that the company has offered to subsequently increase its stake in Sanghi Industries to as much as 83% for up to US$295m in total. It will fund the acquisition of any stake through internal accruals. Sanghi Industries operates the 6.1Mt/yr Sanghipuram cement plant, which is equipped with a 130MW captive power plant and a 13MW waste heat recovery (WHR) plant. The cement plant, in Gujarat, also has a single-jetty port on the Arabian Sea coast. Ambuja Cements' parent company Adani Group plans to more than double the Sanghipuram cement plant's capacity to 15Mt/yr.

Adani Group chair Gautam Adani said “By joining hands with Sanghi Industries, Ambuja is poised to expand its market presence, strengthen its product portfolio and reinforce its position as a leader in the construction materials sector. With this acquisition, Adani Group is well on course to achieve its target of 140Mt/yr of cement manufacturing capacity by 2028 ahead of time.”

India: ACC says that it will not carry out an independent investigation into its parent company Adani Group. US-based short-seller Hindenburg Research accused the group of stock manipulation and accounting fraud involving a 'labyrinthine network' of shell companies in January 2023. Prior to making its accusations, Hindenburg Research obtained a short position on Adani Group. An investigation into Adani Group's activities by the Securities and Exchange Board of India will conclude on 14 August 2023. Filings have also been submitted to the Supreme Court of India.

The Business Standard newspaper has reported that ACC said "Pending final outcome of regulatory investigations and related proceedings, the company has decided to not carry out any separate independent investigation in the matter, and the financial results do not carry any adjustments in this regard." It added "The expert committee submitted its report in the matter dated 6 May 2023, finding no regulatory failure."

Adani Group's original rebuttal of the allegations can be read online here.

India: ACC recorded sales of US$632m in the first quarter of the 2024 financial year, which began on 1 April 2023. This corresponds to a year-on-year rise of 16% from US$545m. The Economic Times newspaper has reported that ACC increased its cement and clinker sales volumes by 23% to 9.4Mt. The producer reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$103m, up by 77% year-on-year. It attributed this to lower costs, including fuel costs, and increased operational efficiencies. Its net profit more than doubled during the quarter, to US$56.6m from US$27.6m in the first quarter of the previous financial year.

ACC said "The cement industry is in positive cycle of demand, as well as cost factors. This comes at the most apposite time, when the company is in a transformation phase, buoyed by synergies with the group. We expect the positive trend of industry to continue in the second quarter of 2023."

Gujarat-based conglomerate Adani Group completed its acquisition of ACC on 16 September 2022. It subsequently began to relocate 'significant roles' from the cement producer's headquarters in Mumbai, Maharashtra.

India: Adani Cement and JK Lakshmi Cement have emerged as frontrunners in the contest to acquire Sanghi Cement for US$733m. The Business Standard newspaper has reported that the prospective buyers are expected to submit formal offers before October 2023.

India: Adani Group subsidiary ACC says that it will add 16Mt/yr-worth of new cement capacity in the five years up to the end of the 2028 financial year in March 2028. CEO Ajay Kapur said that the producer may implement the expansion plan in as short a time as two years. Reuters has reported that the company expects cement demand in India to rise by 7 – 8% between the 2023 financial year and the 2028 financial year.