Ambuja Cements, part of the Adani Group, has announced separate Schemes of Arrangement for the merger of its subsidiaries, Sanghi Industries (SIL) and Penna Cement Industries (PCIL), with itself. The move aims to consolidate operations and optimise business synergies within the Adani Group’s cement portfolio.

Under the merger terms, Ambuja Cements will issue 12 equity shares of Rs two face value each for every 100 equity shares of SIL with a Rs 10 face value. This exchange ratio was recommended by valuers and approved by Ambuja’s Board, enabling SIL shareholders to become Ambuja Cements shareholders. 

Sanghi Industries, a key player in the Indian cement sector, boasts a clinker capacity of 6.6 MTPA and a cement capacity of 6.1 MTPA. Its flagship Sanghipuram plant in Gujarat is India’s largest single-location cement and clinker facility by capacity. The plant is equipped with a captive jetty and power plant, ensuring operational efficiency. Penna Cement Industries has four integrated plants across Andhra Pradesh and Telangana, a grinding unit in Maharashtra, and an operational capacity of 10 MTPA.

Adani Group's Cement Business, CEO Ajay Kapur said, "Enhanced working capital management and internal funds will support the growth of our business operations.”

The company is expanding its footprint with two additional plants under construction in Krishnapatnam and Jodhpur, each with a two MTPA capacity, expected to be completed within the next eight to 12 months. Penna also operates five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo (Sri Lanka), reinforcing its logistics network.

The strategic merger will enable Ambuja Cements to leverage the combined production capacities, geographic reach, and operational efficiencies of SIL and Penna Cement. The transactions, expected to conclude within nine to 12 months, are anticipated to strengthen Ambuja Cements’ market position and competitiveness in the Indian cement industry.