Ambuja Cements, part of the Adani Group, has announced the amalgamation of its subsidiaries Sanghi Industries Limited (SIL) and Penna Cement Industries Limited (PCIL) into the parent company. The move aims to enhance shareholder value, streamline operations, and simplify compliance requirements for effective governance.
Key Highlights of the Merger:
- Share Exchange Ratio: For every 100 equity shares of SIL (face value ₹10 each), Ambuja Cements will issue 12 equity shares (face value ₹2 each) to eligible shareholders.
- Expected Completion: The transaction is anticipated to be completed within 9-12 months, subject to requisite approvals from stakeholders and regulatory authorities.
Sanghi Industries’ Assets:
- Clinker Capacity: 6.6 million tonnes per annum (MTPA)
- Cement Capacity: 6.1 MTPA
- Limestone Reserves: ~1 billion tonnes
- SIL operates India’s largest single-location cement and clinker unit, equipped with a captive jetty and power plant.
Penna Cement’s Assets:
- Operational Capacity: 10 MTPA across four integrated plants in Andhra Pradesh and Telangana, along with a grinding unit in Maharashtra.
- Upcoming Plants: Two additional plants, each with 2 MTPA capacity, under construction in Krishnapatnam and Jodhpur.
- Bulk Terminals: Five terminals located at Kolkata, Gopalpur, Karaikal, Kochi, and Colombo (Sri Lanka).
Strategic Rationale:
Ajay Kapur, CEO – Cement Business, Adani Group, stated,
“This merger will make our company more competitive and efficient while enhancing shareholder value. Unified cash flow management will enable faster expansion and cost savings. Additionally, a larger entity will deliver greater value and simplify compliance requirements.”
The amalgamation of SIL and Penna Cement strengthens Ambuja Cements’ market competitiveness by consolidating operations, pooling resources, and enabling economies of scale. This move also aligns with Ambuja Cements’ vision to expand capacity and boost market leadership in India’s growing cement sector.
About Ambuja Cements:
Ambuja Cements, a leading player in India’s cement industry and part of the Adani Group, has a cement capacity of 89 MTPA with 22 integrated plants and 21 cement grinding units nationwide. Recognized for its sustainable practices, the company is committed to clean, efficient manufacturing processes and reducing carbon emissions under the ‘Make in India’ initiative.
