Ambuja Cements to Merge with Sanghi Industries and Penna Cement to Boost Market Competitiveness.

Ambuja Cements, the cement and building materials arm of the Adani Group, announced on Tuesday its decision to merge its subsidiaries, Sanghi Industries Limited (SIL) and Penna Cement Industries Limited (PCIL), into the parent company.

"This merger aims to strengthen our competitiveness and operational efficiency, delivering greater value to shareholders," said Ajay Kapur, CEO of Cement Business at Adani Group. He highlighted the benefits of unified cash flow management, improved working capital utilization, and cost savings in administration and compliance as key drivers of the merger.

Under the proposed arrangement, Ambuja Cements will issue 12 equity shares of ₹2 each for every 100 equity shares of ₹10 held in SIL. The merger is subject to necessary approvals from stakeholders and authorities, with completion expected within 9–12 months.

SIL brings significant assets to the table, including a clinker capacity of 6.6 MTPA, a cement capacity of 6.1 MTPA, and limestone reserves exceeding 1 billion tonnes. Its Sanghipuram plant in Gujarat is India’s largest single-location cement and clinker facility, featuring a captive jetty and power plant.

Penna Cement contributes four integrated plants in Andhra Pradesh and Telangana, a grinding unit in Maharashtra, and an operational capacity of 10 MTPA. It is also expanding with two plants under construction in Krishnapatnam and Jodhpur, each with a 2 MTPA capacity, set to be operational within the next year. Additionally, Penna operates five bulk cement terminals across India and Sri Lanka.

The merger is expected to position Ambuja Cements as a stronger, more agile player in the market, leveraging scale, resources, and infrastructure to fuel future growth.

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