Ambuja Cements, a key entity of the Adani Group, has announced the merger of its recently acquired companies, Gujarat-based Sanghi Industries and Andhra Pradesh-based Penna Cement Industries, into its operations. On Tuesday, Ambuja Cements revealed separate schemes of arrangement for the integration of its subsidiaries Sanghi Industries Limited (SIL) and Penna Cement Industries Limited (PCIL).
The company stated that this consolidation would simplify its organizational structure, streamline compliance, and enhance governance. The board of Ambuja Cements approved the merger plans during a meeting held on the same day. The amalgamation is subject to regulatory approvals, and the company anticipates completing the process within 9–12 months.
Ambuja Cements, which owns 58.08% of Sanghi Industries’ equity, acquired the company in December 2023. For every 100 shares of SIL (face value of ₹10 each), Ambuja Cements will issue 12 equity shares with a face value of ₹2 each to eligible shareholders.
Regarding Penna Cement, Ambuja will pay ₹321.50 per equity share (face value of ₹10 each) to the shareholders listed on the record date. Ambuja Cements finalized its acquisition of Penna Cement on August 16, 2024.
Ajay Kapur, CEO of Adani Group’s Cement Business, highlighted that the merger aims to boost competitiveness and operational efficiency while delivering greater value to shareholders. He noted that unified cash flow management and internal fund optimization would support accelerated growth, cost savings, and streamlined governance.
Adani Group first entered the cement sector in September 2022 by acquiring controlling stakes in Ambuja Cement and ACC Ltd. from Swiss firm Holcim for $6.4 billion (approximately ₹51,000 crore). The acquisition was followed by an open offer worth ₹31,000 crore to increase its stake. The group has since embarked on an aggressive expansion strategy. In October 2024, it acquired CK Birla Group’s Orient Cement for ₹8,100 crore, moving closer to its goal of reaching a 100 million tonnes per annum (MTPA) capacity by FY25 and 140 MTPA by FY28.
Adani Cement is vying for market leadership against UltraTech Cement, part of the Aditya Birla Group, which leads the sector with a consolidated capacity of 156.66 MTPA and plans to expand to 200 MTPA by FY27. Both companies are rapidly scaling their capacities to strengthen their positions in the competitive Indian cement market.
