Ambuja Cements, a subsidiary of the Adani Group, announced on Friday that it has successfully completed the acquisition of Hyderabad-based Penna Cement Industries Limited. The acquisition was finalized through a binding agreement, making Penna Cement a wholly-owned subsidiary of Ambuja Cements, effective August 16.
In a regulatory filing, Ambuja Cements revealed that its Board of Directors had approved the acquisition of a 100% stake in Penna Cement during a meeting held on June 13, 2024. The transaction, valued at ₹10,422 crore, is expected to strengthen Ambuja Cements’ market presence in southern India and reinforce its position as a leading player in the cement industry across the country. The acquisition will be fully funded through internal accruals.
Penna Cement Industries has a total cement production capacity of 14 million tonnes per annum (MTPA), with 10 MTPA currently operational. The remaining capacity, which includes facilities at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA), is under construction and is expected to be completed within the next 6 to 12 months.
Approximately 90% of Penna Cement’s capacity is supported by railway sidings, along with captive power plants and waste heat recovery systems. Additionally, surplus clinker at the Jodhpur plant will enable an extra 3 MTPA of cement grinding capacity, beyond the existing 14 MTPA.
Ambuja Cements, part of the Adani Group, is a prominent player in the Indian cement industry, known for its extensive market presence and robust operational capabilities. Established as one of India’s leading cement manufacturers, Ambuja Cements has made significant strides in expanding its footprint across the country.
The company’s portfolio includes a wide range of cement products catering to diverse construction needs. With a focus on sustainable practices and technological advancements, Ambuja Cements aims to drive industry standards and meet growing infrastructure demands. The company’s recent acquisition of Penna Cement further enhances its market position and capacity, solidifying its role as a key contributor to India’s building and construction sector.
