Gautam Adani, Chairman of Adani Group, has issued a letter to Ambuja Cements shareholders, addressing recent developments and the company's performance following the Hindenburg report controversy.

SEBI Dismissal and Validation

Adani announced that the Securities and Exchange Board of India (SEBI) has dismissed the allegations against the group, calling it a "powerful validation of the transparency, governance and purpose" with which the company has always operated. This regulatory clearance comes in response to the Hindenburg report released on January 24, 2023, which had raised questions about the group's governance and operations.

Impressive Financial Growth

Despite the challenges, the Adani Group has demonstrated remarkable financial growth:

The group's portfolio EBITDA grew from ₹57,205.00 crores in FY23 to ₹89,806.00 crores in FY25, representing a 57.00% absolute growth and a two-year CAGR of 25.00%. Additionally, the Gross Block expanded by nearly ₹2 lakh crores, showcasing a 48.00% rise in just two years.

Key Infrastructure Achievements

Adani highlighted several transformative projects completed during this period:

1. Commissioned India's first container transshipment port at Vizhinjam, alongside the Colombo West International Terminal.
2. Added 6 GW of renewable capacity, including the Khavda project, touted as the world's largest single-location renewable project.
3. Commissioned the world's largest copper smelter and metallurgical complex.
4. Expanded the energy network with 7,000 circuit kms of transmission lines and 4 GW of new thermal capacity across India and overseas.

Future Commitments

Looking ahead, Adani committed to:

1. Further strengthening governance standards to inspire confidence across markets and regulators.
2. Accelerating innovation and sustainability, aiming to set benchmarks not just in India but globally.
3. Doubling down on nation-building by investing in infrastructure that powers India's long-term growth story.

Capacity Expansion

In a significant development, Ambuja Cements Limited announced that its subsidiary Penna Cement Industries Limited has successfully commissioned a 2 MTPA brownfield expansion of a Cement Grinding Unit in Krishnapatnam, Andhra Pradesh. This expansion increases Ambuja Cement's consolidated cement capacity to 106.45 MTPA. The company has informed stock exchanges including NSE, BSE, and Luxembourg Stock Exchange about this development.

A Message of Resilience

Adani concluded his letter with a message of resilience, quoting Shri Sohan Lal Dwivedi: "The boat that fears the waves can never reach the shore, But those who keep on trying will win forevermore...."

The Chairman expressed gratitude to shareholders, lenders, suppliers, and partners for their trust and support during challenging times. He reaffirmed the group's commitment to building a brighter future for India and the world, emphasizing that the recent events have strengthened the core foundations of the company.

As Ambuja Cements and the Adani Group move forward, they aim to write the next chapters of their growth story, focusing on resilience, integrity, and an unwavering commitment to India's aspirations.

The Delhi High Court has instructed Ambuja Cements and JSW Cement to explore mediation in a trademark dispute over the 'Kawach' brand name, highlighting the intensifying competition in the specialized cement market.

Trademark Infringement Allegations

Ambuja Cements, a part of the Adani Group, has taken legal action to restrain JSW firms from using 'Kawach' in their product branding. The company alleges that JSW has copied the name for its recently launched 'Jal Kawach' cement product. Ambuja Cements has been using the registered trademark 'Ambuja Kawach' since 2020 for its water-repellent cement.

Disputed Branding Elements

The core of the dispute lies in the similarities between the two products:

• Ambuja's product: 'Ambuja Kawach'
• JSW's product: 'JSW Cement CHD Jal Kawach'

Ambuja Cements contends that JSW's product uses similar branding and marketing descriptors, including:

1. Water resistance
2. Seepage prevention
3. Durability

These similarities, according to Ambuja, constitute trademark infringement and unfair business practices, potentially leveraging Ambuja's established brand reputation.

Court Proceedings and Next Steps

The Delhi High Court has taken a reconciliatory approach by directing both parties to explore mediation. This move underscores the court's preference for an amicable resolution to the dispute. However, if mediation fails, the court has scheduled the next hearing for October 15.

Market Impact

The news of the trademark dispute and potential mediation appears to have had a positive impact on Ambuja Cements' stock performance. On the day of the announcement, Ambuja Cements shares closed 1.60% higher at ₹582.40.

This legal battle between two major players in the Indian cement industry highlights the growing importance of specialized products in the market and the value companies place on protecting their brand identities and intellectual property.

As the case progresses, it will be closely watched by industry observers, as its outcome could have implications for branding strategies and trademark protection in the highly competitive cement sector.