Adani Group Approves Merger Of Sanghi Industries, Penna Cements With Ambuja Cements

In a major strategic move, Ambuja Cements has announced the merger of Sanghi Industries and Penna Cement Industries into its operations, creating a unified governance structure. This bold consolidation effort is set to enhance operational efficiency, strengthen competitiveness, and simplify compliance processes, positioning Ambuja as a dominant player in the cement industry.

A Game-Changing Opportunity for Sanghi Industries Shareholders

For Sanghi Industries’ shareholders, this merger represents an exciting opportunity. Transitioning from a smaller, illiquid stock to holding shares in a large-cap powerhouse like Ambuja Cements offers significant growth potential. As a more liquid and stable investment, this shift unlocks greater value and broader growth prospects for investors.

By focusing on consolidation and streamlining operations, Ambuja Cements is solidifying its place as a market leader. With massive production capacities and a strengthened business model, Ambuja is now poised for continued expansion and improved profitability, making this a promising development for all stakeholders involved.

Adani Group entered the cement sector in September 2022 after acquiring controlling stakes in Ambuja Cement from Swiss firm Holcim for $6.4 billion (about ₹51,000 crore) in cash proceeds. Ambuja Cements owns a 51 per cent stake in ACC Ltd. Later, it launched a ₹31,000 crore open offer to acquire 26 per cent additional stakes from public shareholders.

After that, it expanded its capacity. In October, billionaire Gautam Adani-led Adani Group announced the acquisition of CK Birla group firm Orient Cement at a valuation of ₹8,100 crore as part of its expansion drive. With the acquisition, Adani Cement will achieve a capacity of 100 MT (million tonnes) per annum by the end of FY25 and a two per cent gain in the country’s overall market share.

Adani group aims for a 140 million tonnes per annum capacity by FY28. It competes with Aditya Birla group firm UltraTech Cement Ltd, which leads the segment with a consolidated capacity of 156.66 million tonnes of grey cement per annum (MTPA). Both the cement makers are rapidly scaling up their capacity. Adani Group aspires to have 140 MTPA capacity by FY28, while UltraTech expects to have 200 MTPA by FY27.

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