Good news for Adani shareholders! Adani Cement's ACC and Ambuja to resume Himachal operations

Adani Cement, part of the embattled Adani Group, on Monday said its ACC and Ambuja Cements businesses will resume operations at two plants in Himachal Pradesh after resolving issues over freight rates.

All stakeholders have amicably resolved the issues on freight rates in Himachal Pradesh, the company said, adding that ACC and Ambuja will resume operations on Tuesday at the Gagal and Darlaghat plants.

The parties have agreed what equates to a 10-12% cut in overall freight rates from Tuesday, the company said.

"The new freight rates from tomorrow for single axle trucks of 12 tons would be Rs 10.30 Per Ton Per Km for Ambuja Cements’ Darlaghat plant and ACC’s Gagal plant as compared to earlier rates of Rs 11.41 for ACC’s Gagal and Rs 10.58 for Ambuja Cements’ Darlaghat units. The new rates for multi-axle 24 ton trucks would be Rs 9.3 Per Ton Per Km for both units. This will result in overall reduction of 10-12% in the freight rates benefiting the customers of Himachal Pradesh.

"The Gagal and Darlaghat units of ACC & Ambuja Cements are one of the largest industrial units in the state and play a vital role in providing employment & contributing to the economic viability of the state. The reopening of plants will help in the economic, social and overall development of the state," said a spokesperson of Adani Cement.

The two plants have been shut for more two months owing to deadlocked negotiations between Adani Group's cement business and Himachal Pradesh-based truck drivers, government officials and truckers have said.

Adani Group is in talks with lenders to repay a $500 million bridge loan facility it had taken to buy controlling stakes in cement companies ACC and Ambuja Cements Ltd last year, the Economic Times daily reported last week.

The group is looking to repay the bridge loan with cash this month, the report said, citing people aware of the matter, adding that the loan had a tenor of six months and was part of a larger $5.25 billion financing package.

The report comes a day after the group said its companies face no material refinancing risk or near-term liquidity issues, in its latest attempt to calm investors spooked by a US short-seller Hindenburg Research's critical report on its business practices.

The loan was underwritten by Barclays, Deutsche Bank and Standard Chartered, said the report.

With inputs from agencies