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of India Adani Group will continue to use acc And Ambuja Cement Ajay Kapoor, chief executive officer of both the cement companies, said at the annual shareholder meeting that the brands will sell cement products and there are no plans to merge the two entities.
Group to become India’s second largest cement producer in 2022 UltraTech CementWith the $10.5 billion acquisition of both Ambuja Cements and ACC from Holcim of Switzerland.
Earlier this year, media reports said that the Adani Group was exploring the possibility of a merger between the two companies.
“No disruption is expected in the use of these older brands,” Kapoor said.
However, shares of both the companies were still trading below their January levels after shares of Adani group companies fell following US short-seller reports.
Ambuja and ACC were down 15.7% and 23%, respectively, since Hindenburg disclosed its short positions.
Pointing to efforts to reduce production costs by streamlining manufacturing and logistics processes, Kapoor said, “We aim to improve the EBITDA margin of the cement business by Rs 400-450 per tonne in the next 24 months.” Kapoor said there would be tons of new capacity in the next two to five years as India’s cement demand is growing at 7-8%.
The company’s new plant at Ametha in the central Indian state of Madhya Pradesh is expected to start operations soon.
The expansion is part of Adani Group’s previously announced plan to double its total cement production capacity in five years.
