Ambuja Cements Limited · NSE:AMBUJACEM

Ambuja Cements — Merger or Acquisition (October 2024)

13 slides from Ambuja Cements's merger presentation, Oct 22, 2024

  1. Slide 1: Exchange cover letter on investment rationale presentation

    October 22, 2024 National Stock Exchange of India BSE Limited Luxembourg Stock Exchange Limited Scrip Code: AMBUJACEM Scrip Code: 500425 Code: US02336R2004 Sub.: Presentation on investment rationale on acquisition of Orient Cement Limited Dear Sir / Madam, Further to our communication dated 22nd Oct

  2. Slide 2: Investment Rationale - Acquisition of Orient Cement

    3dani ement Ambuja Cement Investment Rationale - Acquisition of Orient Cement ey Ace.

  3. Slide 3: Ambuja Cements to acquire 46.8% shares of Orient Cement Limited

     Ambuja Cements to acquire 46.8% shares of Orient Cement Limited (“OCL”). Transaction has triggered an open offer of 26.0% to acquire shares from Public Shareholder.  Transaction at an Equity Value of Rs. 8.100 Crs or Rs. 395.40/share.  Transaction to be fully funded through internal accruals. 

  4. Slide 4: Helps accelerate Ambuja Cements' journey to 100 MTPA+ capacity by 2025

     Helps Ambuja Cements to increase its presence by 8.5 MTPA in core market of South & West India.  Pan India Market Share to improve by ~2%.  OCL also has additional 8.1 MTPA capacities which are in Ready to Execute phase and construction can be started immediately.  In addition, large size high

  5. Slide 5: Proposed acquisition adds 8.5 MTPA capacity and potential to expand additional 14.1 MTPA

    Proposed acquisition adds 8.5 MTPA capacity and provides potential to expand additional 14.1 MTPA capacity. $ Ambuja/ACC have long term purchase agreement with Dahej plant of Adani Cement Industries Ltd. * Includes under construction Penna cement plants, Ready to Execute Projects of OCL and other pr

  6. Slide 6: Adani Cement Footprint + Orient Cement's Plant wise Capacity

    Adani Cement Footprint + Orient Cement’s Plant wise Capacity Orient Footprint Clinker Cement Plant (MTPA) (MTPA) Chittapur, KR 2.1 3.0 Devapur, TG 3.5 3.5 Jalgaon GU - 2.0 Operational Capacity 5.6 8.5 Chittorgarh Mine Chittapur, KR 2.9 4.0 Devapur, TG + Satpura, MP 3.0 4.1 Ready to Implement Capacit

  7. Slide 7: Acquisition strengthens Ambuja Cement's journey of cost leadership

     Entire Limestone Reserves at Nil Premium (Pre-Auction era mines)  Railway siding at all the plants  95 MW CPP, 10 MW WHRS & 13.5 MW Renewal Power. 19.7 MW Renewal Power is under commissioning; AFR - 18%.  Opportunity to further improve operational efficiency through green power and domestic coa

  8. Slide 8: Capacity utilization ramp-up, EBITDA and ROCE targets

     Expected to improve capacity utilization which will ramp up to 85% by third year.  Ambuja & ACC brand to further help in trade sales , improving realizations and sale of premium cement.  Cost optimization and rationalization of realization to achieve sustainable EBITDA of more than 1,500/t by FY

  9. Slide 9: Orient Cement is almost debt free

     Orient Cement is almost debt free.  Rating targeted to be upgraded from AA – to AAA. The acquisition will further strengthen the Balance Sheet of Orient Cement. 8

  10. Slide 10: Statement by Karan Adani, Director of Ambuja Cements

    “This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Mr Karan Adani, Director of Ambuja Cements. “By acquiring OCL, Ambuja is poised to reach 100 MTPA cemen

  11. Slide 11: Statement by CK Birla, Chairman of Orient Cement

    CK Birla, Chairman of Orient Cement and the CK Birla Group, said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and

  12. Slide 12: Statement by Amita Birla, Co-Chairman, CK Birla Group

    “Amita Birla, Co-Chairman, CK Birla Group, added, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well

  13. Slide 13: Thank You

    Thank You adani Cement

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