Ambuja Cements Limited · NSE:AMBUJACEM
Ambuja Cements — Merger or Acquisition (June 2024)
11 slides from Ambuja Cements's merger presentation, Jun 14, 2024
Slide 1: Exchange filing cover letter on Penna Cement acquisition presentation
June 14, 2024 National Stock Exchange of India BSE Limited Luxembourg Stock Limited Exchange Scrip Code: 500425 Scrip Code: AMBUJACEM Code: US02336R2004 Sub.: Presentation on investment rationale on acquisition of Penna Cement Industries Ltd. Dear Sir / Madam, Further to our communication dated 13th
Slide 2: Investment Rationale - Acquisition of Penna Cement
Ambuja Cement Investment Rationale - Acquisition of Penna Cement
Slide 3: Penna Cement – Transaction Brief
Penna Cement – Transaction Brief ➢ Ambuja Cements to acquire 100% shares of Penna Cement Industries Limited. Penna Cement to become WOS of Ambuja Cements. ➢ Transaction at an Enterprise Value of Rs. 10,422 Crs. ➢ Transaction to be fully funded through internal accruals. ➢ It includes 14.0 MTPA Cemen
Slide 4: Penna Cement – Rationale for Investment: Growth
Penna Cement – Rationale for Investment Growth ➢ Helps Ambuja Cements to increase its presence in South India while further expansion in Pan India. Fast tracks the capacity which otherwise was planned as a greenfield expansion. ➢ South India Market Share to improve by ~8% to ~15% and Pan India Marke
Slide 5: Cement Capacity – A step closer to 140 MTPA by 2028
Cement Capacity – A step closer to 140 MTPA by 2028 Proposed acquisition adds 14 MTPA capacity and provided potential to expand additional 3 MTPA with surplus clinker in Jodhpur IU. $ Ambuja/ACC have long term purchase agreement with Dahej plant of Adani Cement Industries Ltd., 100% subsidiary of AE
Slide 6: Asset Footprint with Penna Cement
Asset Footprint with Penna Cement Penna Cement’s Plant wise Capacity Clinker Cement Plant (MTPA) (MTPA) Talariceruvu, AP 1.3 1.8 Boyareddypalli, AP 3.5 2.0 Ganeshpahad, TG 1.0 1.2 Tandur, TG 1.5 2.0 Krishnapatnam, AP - 2.0 Patas, MH - 1.0 Operational Capacity 7.3 10.0 Jodhpur, RJ # 3.0 2.0 Krishnapa
Slide 7: Penna Cement – Rationale for Investment: Cost Leadership
Penna Cement – Rationale for Investment Cost Leadership ➢ Limestone Reserves at Nil Premium (Pre-Auction era mines) ➢ Railway siding at all the plants except Talaricheruvu (Tadipatri). ➢ Sea Logistics (Five BCTs and one 25,000 ton Cement Carrier) to provide substantial competitive edge to cover peni
Slide 8: Coastal Footprint
Coastal Footprint Sanghi Ambujanaga Navlakhir The acquisition provides 25,500 Dahej Surat Kolkata ton state of the art self Gopalpur discharging Cement Carrier. Panvel Krishnapatnam Clinker movement Boyareddypalli Cement movement Mangalore Karaikal Cochin Tuticorin The acquisition gives substantial
Slide 9: Penna Cement – Rationale for Investment: Improved Profitability
Penna Cement – Rationale for Investment Improved Profitability ➢ Expected to improve capacity utilization which will ramp up to 85% by third year. ➢ EBITDA improvement which will help Ambuja to achieve sustainable EBITDA of more than 1,500/t by FY28. ➢ Ambuja & ACC brand to help command premium. ➢ T
Slide 10: Penna Cement – Rationale for Investment: Stronger Balance Sheet
Penna Cement – Rationale for Investment Stronger Balance Sheet ➢ All debt to be fully paid on closing, which will provide substantial savings in Interest Cost. ➢ Rating targeted to be upgraded form BBB – to AAA. The acquisition will improve Balance Sheet of Penna Cement. 9
Slide 11: Thank You
Thank You adani ° Cement