Penna buy to cut logistics costs for Adani Cements: CFO Vinod Bahety
logistics costs for Adani Cements, chief financial officer Vinod Bahety told analysts in a call. Adani Cements transports less than 2% of its cargo through the sea route, and access to five bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi and Colombo through Penna Cement is expected to boost this to 10% by 2027-28 (April-March), he said.
«A key highlight of this transaction is that it gives me complete strength for the servicing of peninsular India. A lot of companies have cement, but this company has been much more visionary in terms of sea logistics infrastructure,» Bahety said.
For the cargo that is transported through the sea route, it can help bring down costs by as much as ₹300-400 per tonne, while on an overall basis, it will bring in savings of ₹50-70/tonne.
Adani Cements uses the sea route for some transportation at Sanghi Industries and Ambuja Cements. «The plan for sea logistics will mature now, after this acquisition. You will see a much more impactful progression on sea logistics in 6-12 months time,» said Bahety.
Adani Cements announced the buyout of Hyderabad-based Penna Cement for an enterprise value of ₹10,422 crore earlier this week. Consisting of Ambuja Cements, ACC and Sanghi Industries, it has a production capacity of nearly 79 million. It is aiming a capacity of 96 million tonnes by the end of the current fiscal, and 110 million tonnes by the end of FY26.
Penna Cement has 10 million tonne capacity which is ready for use, while another 2 million tonnes are under construction each
