Gujarat Ambuja to grow via buyouts

Gujarat Ambuja Cements is looking at growth only through acquisitions.

The company is scouting for a capacity of around two million tonne in the northern and western markets.

The company will also be looking at raising funds through borrowings for these acquisitions.

Senior company executives said, "We are only looking at growing through acquisitions. We will be looking at opportunities in the northern and western regions and will acquire a 1-2 million tonne capacity."

The company has earmarked around Rs 900-1,000 crore for acquisitions. Company executives said, "We will borrow funds as and when we go in for acquisitions."

The debt-equity ratio of the company as on June 30, 2004, is around 0.6, they added.

The company reduced its debt by around Rs 480 crore in the year ended June 30, 2004, to Rs 1,270 crore.

The company is also expecting Rs 600 crore as free cash flows by the end of the current financial year.

"We are expecting a turnover growth of around 10-15 per cent in the current year," company executives said.

Gujarat Ambuja's existing rated capacity is 14.5 million tonne per annum, inclusive of its subsidiaries. The company recently announced a one million tonne capacity expansion at its Ropar plant in Punjab.