For around Rs 414 crore, Ambuja Cements has agreed to purchase a cement grinding mill in Tamil Nadu from My Home Group, expanding its presence in the southern region. After the Adani Group acquired it, this will be Ambuja Cements' third acquisition. Prior purchases were made by Ambuja Cements subsidiary ACC and Sanghi Industries, as well as Asian Concretes & Cements.
With an annual capacity of 1.5 million tonnes, My Home's cement grinding operation in Tuticorin, Tamil Nadu, would increase Ambuja's overall capacity to 78.9 million tonnes, solidifying its position as the second-largest operator in India, after UltraTech Cement of the Aditya Birla Group. Ambuja Cements stated that internal accruals will be used to finance the transaction. It would also keep the seventy workers at the plant, the Ajay Kapur-led business stated.
The multifaceted building-to-media Jupally Rameswar Rao, a millionaire businessman headquartered in Hyderabad, is the owner of My Home Group. The firm would own three cement facilities in Telangana and Andhra Pradesh when the sale of the Tamil Nadu business is completed.It generates 11 million tons of construction materials a year, which are sold under the Maha Cement name. In an ownership collaboration with Irish multinational CRH, it manages the cement business.
Along with Megha Engineering, which made news for being the second-largest purchaser of electoral bonds valued at Rs 966 crore, the firm also controls TV9 news outlets.
According to a source, the group's decision to sell the Tuticorin plant was mainly motivated by financial considerations. Due to its remote location from its primary customer bases (such as Telangana, Andhra Pradesh, and Odisha) and therefore elevated freight expenses, the unit was not operating at optimal efficiency. According to Ambuja, the 61-acre Tuticorin factory has a long-term fly ash supply arrangement for raw material procurement.
