Ambuja Cement, the cement and building material company of Adani Cement and part of Adani Group, has entered into a binding agreement for the acquisition of Penna Cement Industries (PCIL). This acquisition will help move towards its target of reaching a capacity of 140 million tonne per annum (MTPA) by 2028.

The Adani group company will acquire 100 percent shares of PCIL from its existing promoter group, Mr P Pratap Reddy and family at an enterprise value of Rs 10,422 crore. to be fully funded through internal accruals. This marks a step forward in Ambuja Cement’s accelerating growth and expanding its market presence in south India.

PCIL’s strategic location and limestone reserves offers an opportunity to increase cement capacity through debottlenecking and additional investment. PCIL has 14 MTPA cement capacity, of which 10 MTPA is operational, and the remaining under construction at Krishnapatnam, and Jodhpur which would be completed within six to 12 months. Around 90 percent of the cement capacity comes with railway sidings, and some through captive power plants and waste heat recovery systems.

Further, surplus clinker at the plant in Jodhpur will support an additional three MTPA cement grinding capacity. Also, the existing dealers of PCIL will move to Adani Cement’s market network.

Moreover, the bulk cement terminals (BCTs) will provide access to the eastern and southern parts of peninsular India. It will thus strengthen Adani Cement’s sea transportation logistics capabilities ith five bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi and Colombo.