Sagar Cements Limited has successfully acquired a majority stake in Andhra Cements , marking a significant development in the cement industry. The acquisition, executed through a resolution plan approved by the National Company Law Tribunal (NCLT), Amaravati Bench, has resulted in Sagar Cements gaining control of 95% of Andhra Cements' equity.

Key Details of the Acquisition

Implications of the Acquisition

Ownership Change

Prior to this acquisition, Sagar Cements held no shares in Andhra Cements. This move represents a complete shift in ownership and control.

Capital Structure

Following the acquisition, Andhra Cements' total equity share capital now stands at 9,21,72,140 shares, amounting to Rs. 92,17,21,400.

Legal Framework

The acquisition was carried out under the Insolvency and Bankruptcy Code, 2016, suggesting that Andhra Cements may have been undergoing financial distress.

Industry Consolidation

This acquisition could potentially lead to increased consolidation in the cement industry, potentially affecting market dynamics and competition.

The successful acquisition of Andhra Cements by Sagar Cements through the NCLT-approved resolution plan demonstrates the ongoing restructuring and consolidation activities in the Indian cement sector. As the industry continues to evolve, such strategic moves may have significant implications for market share, production capacities, and competitive positioning in the cement industry.

Andhra Cements Limited , a subsidiary of Sagar Cements Limited, has announced a significant upgrade to its manufacturing capabilities. The company has successfully installed and commenced operations of a new 6-stage preheater at its plant in Sri Durga Cement Works, Dachepalli Mandal, Palnadu District, Andhra Pradesh.

Capacity Expansion

The installation of the new 6-stage preheater is part of a broader modernization and expansion project aimed at enhancing the company's production capacity. Key highlights of the expansion include:

This substantial increase in both clinker and cement production capabilities positions Andhra Cements to meet growing market demands more effectively.

Project Timeline and Progress

The company disclosed that the 6-stage preheater commenced operations on October 23, 2025. While this crucial component is now operational, Andhra Cements noted that cement mill works are still in progress at the plant.

Financial Performance

In conjunction with this operational update, Andhra Cements also released its unaudited financial results for the quarter and half-year ended September 30, 2025. Key financial highlights include:

Despite the increase in revenue, the company continues to face challenges, as evidenced by the widening losses.

Strategic Initiatives

Andhra Cements is actively pursuing strategies to improve its financial position:

1. Rights Issue: The company's board has approved a proposal to raise up to ₹18,000.00 lakhs through a rights issue to existing shareholders.

2. Asset Optimization: Plans are underway to sell unused land parcels, with the sale expected to be completed in the current financial year 2025-26.

These initiatives demonstrate Andhra Cements' commitment to strengthening its financial foundation while expanding its operational capabilities.

The installation of the new 6-stage preheater marks a significant milestone in Andhra Cements' growth strategy. As the company continues to navigate challenging market conditions, this capacity expansion could play a crucial role in its efforts to improve performance and market position in the coming quarters.