- 21 Feb 2023
- ICICIdirect Research
ACC, AMBUJA TO RESUME HIMACHAL PRADESH OPERATIONS
AMBUJACEM - 566 Change: 2.05 (0.36 %)News: As per media reports, ACC and Ambuja Cements (Adani group companies) will resume operations at two plants in Himachal Pradesh after resolving freight issues in the state. The new freight rates have been finalised at Rs 9.3-10.3 per ton per km vs. earlier rates of Rs 10.6-11.4 (overall reduction of 10-12%). Adani was earlier envisaging a rate of Rs 6 per ton per km
Views: The Darlaghat plant of Ambuja Cements has a capacity of 2 MT while that of ACC's Gagal produces 5.5 MTPA (11% of consolidated capacity). As per our calculations, assuming 250 km lead time the plant would be saving around ~ Rs 250-300/t. On a company level, the savings in freight cost are expected at Rs 25-30/t. Adani groups expertise (in freight and power expenses) will help them improve cost dynamics and gain supply chain efficiencies
Impact: Positive