Adani cements consolidation: ACC, Orient to merge with Ambuja Cements

Ambuja Cements currently has a market capitalisation of about Rs 1.33 lakh crore, while ACC and Orient Cement are valued at approximately Rs 33,347 crore and Rs 3,366 crore, respectively.

The Adani Group made a landmark entry into the cement sector in May 2022 by acquiring controlling stakes in Ambuja Cements Ltd and ACC Ltd from Swiss major Holcim in a $10.5-billion deal, instantly becoming India’s second-largest cement manufacturer. The transaction included Holcim’s 63.19 per cent stake in Ambuja Cements, which in turn holds a majority stake in ACC, sharply expanding Adani’s production capacity and market footprint. Building on this consolidation drive, the group — through Ambuja Cements — also acquired a controlling stake in Orient Cement Ltd for about Rs 8,100 crore in a deal announced in late 2024.

The latest merger plan will simplify and rationalise the network, branding and sales promotion spends. “It will also facilitate the achievement of targeted cost efficiencies, margin expansion and growth metrics,” Ambuja Cements said in an exchange filing.

Subject to statutory and regulatory approvals, the transaction is expected to be completed over the next year. “The merger will unlock greater operational efficiencies, optimise manufacturing and logistics, and enable more efficient capital deployment. These improvements will boost profitability, support capacity expansion, and enhance long-term shareholder returns,” Ambuja Cements said in a statement.

The amalgamation is expected to eliminate structural duplication, reduce administrative costs and enable faster, more agile decision-making. Following the merger, no separate management services agreements (MSAs) will be required with ACC, Orient Cement, Penna Cement or Sanghi Industries, as these entities will become integral parts of Ambuja Cements.

The consolidation aligns with Ambuja Cements’ strategic plan to increase its cement production capacity from 107 million tonnes per annum (MTPA) to 155 MTPA by FY28, enabling more efficient capital allocation and quicker responses to market demand.

Separately, the schemes of amalgamation of Sanghi Industries and Penna Cement with Ambuja Cements are at various stages of approval. Once these are completed, all stakeholders will engage with a single, unified cement company.

The merged entity is also expected to benefit from a consolidated ESG framework, accelerating the adoption of renewable energy, low-carbon cement solutions and sustainable manufacturing practices.

Ambuja Cements currently operates a cement capacity of 107 MTPA across 24 integrated manufacturing plants and 22 grinding units. The company is advancing its decarbonisation efforts through investments in 1 GW of renewable energy capacity, including solar and wind power, and 376 MW of waste heat recovery systems by FY28.