Karan Adani, son of tycoon Gautam Adani, has been named as the chairman of cement maker ACC. The move is being termed to be significant as the Adani juggernaut rolls on with ambitious expansion plans.
After Adani’s completion of ACC acquisition, Karan Adani has been named as chairman of the board at ACC. Son of the world’s third richest man is currently the CEO of Adani Ports and Special Economic Zone.
On Friday, Adani Group had completed the acquisition of Ambuja Cements and ACC, making it the second largest cement player in the country. The deal comprised of Swiss company Holcim selling its full stakes in Ambuja Cements at a share price of Rs 385 and in ACC at a share price of Rs 2,300 – amounting to USD 6.4 billion for Holcim.
In a statement, Adani Group said, “Currently, Ambuja Cements and ACC have a combined installed production capacity of 67.5 MTPA. The two companies are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure, represented by their 14 integrated units, 16 grinding units, 79 ready-mix concrete plants and over 78,000 channel partners across India”.
The acquisition is India's largest in Infrastructure and Materials space valued at USD 6.50 billion. The transaction was financed by facilities aggregating to USD 4.50 billion availed from 14 international banks.
ACC announced a string of resignations from its board soon after the completion of acquisition including that of CEO and MD Neeraj Akhoury.
Amongst the new appointments, Vinod Bahety was selected as ACC’s new chief financial officer.
Gautam Adani made headlines earlier yesterday as he briefly became the second richest man on the globe (Forbes data). Currently, he is the third richest with a total net worth of USD 152.2 billion.
The Adani Group has stepped up its expansion plans significantly in the past year across markets including energy, real estate, and infrastructure business. The company is also seeking a controlling stake in media house NDTV.