Adani plans merger of Sanghi and Penna units with Ambuja Cements

Ambuja Cements, part of the Adani Group, has announced plans to merge its subsidiaries Sanghi Industries and Penna Cement Industries. The move is aimed at consolidating operations and strengthening the company’s foothold in the cement sector. The merger is expected to enhance operational efficiency and bolster Ambuja Cements' market presence, as reported by various media sources.

As part of the merger plan with Sanghi Industries, Ambuja Cements will offer shareholders 12 shares of Ambuja for every 100 shares of Sanghi they hold. With a 58.08% stake in Sanghi Industries, Ambuja, a part of the Adani Group, aims to fully integrate the subsidiary to enhance operational efficiency and drive growth.

Ambuja Cements is set to significantly boost its production capacity through the merger. Post-merger, the company’s capacity is expected to exceed 100 million tonnes per annum (MTPA) by the end of the fiscal year, up from its current 89 MTPA. Ambuja has outlined plans to further expand its capacity to 140 MTPA by 2027-28

“This merger aims to make our company more competitive and efficient, ultimately enhancing shareholder value”: said Ajay Kapur, CEO of Adani Group’s cement business. “Enhanced working capital management and internal funds will support the growth of our business operations.”

Ambuja Cements expects the consolidation to streamline regulatory processes, enhance cost efficiency, and centralise cash flow management. The company aims to leverage these benefits to accelerate its expansion plans.