Shares of Ambuja Cements rose more than 4% in early morning trade after the company announced the approval of a large-scale merger involving ACC Ltd and Orient Cement Ltd. The move marks a significant consolidation within the Adani Group’s cement portfolio and paves the way for the creation of a single, pan-India cement platform.
Ambuja Cements, which is part of the Adani Group, stated that its board has approved separate schemes of amalgamation to merge both ACC and Orient Cement into Ambuja. While all three entities will operate under one unified corporate structure after the merger, their individual brands will continue to be marketed independently across their respective regions.
According to the company’s disclosure, the consolidation is aimed at improving operational efficiency, optimising capital allocation, and simplifying the overall corporate structure. The entire merger process is expected to be completed over the next year, subject to regulatory and shareholder approvals.
As part of the transaction, Ambuja Cements will issue equity shares to shareholders of ACC and Orient Cement under a defined share swap arrangement. ACC shareholders will receive 328 equity shares of Ambuja Cements with a face value of ₹2 each for every 100 ACC shares of face value ₹10. Meanwhile, Orient Cement shareholders will receive 33 equity shares of Ambuja Cements of face value ₹2 each for every 100 Orient Cement shares with a face value of ₹1.
The company highlighted that the merger is expected to unlock significant financial and operational synergies. These include optimisation of manufacturing and logistics networks, reduction in administrative overheads, and elimination of structural duplications. Ambuja Cements estimates that efficiencies across branding, distribution, and promotional activities could enhance margins by up to ₹100 per tonne.
This consolidation also aligns with Ambuja’s long-term growth strategy. The company plans to expand its cement production capacity from the current 107 million tonnes per annum to 155 million tonnes per annum by FY28. Management indicated that the merged entity is expected to maintain a strong and largely debt-free balance sheet, supporting future expansion plans.
In addition to ACC and Orient Cement, Ambuja Cements revealed that schemes for the amalgamation of Sanghi Industries and Penna Cement are currently under evaluation and at various stages of approval. Once these processes are completed, stakeholders across all entities are expected to engage with a single, unified company.
The post-merger organisation will also operate under a consolidated ESG framework, with a focus on renewable energy adoption, low-carbon cement production, and sustainable manufacturing practices. Investors reacted positively to the announcement, viewing the merger as a strategic step towards building scale, improving profitability, and strengthening Ambuja Cements’ position in India’s competitive cement industry.
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