Mumbai, Dec 23 (UNI) The Adani Group has officially announced that the board of Ambuja Cements has approved the amalgamation of its subsidiaries ACC Ltd and Orient Cement with the company to create a larger cement company.
The transaction will be entirely share-based, with no cash payout.
ACC shareholders will receive 328 Ambuja shares of face value of Rs 2 each, for every 100 ACC shares of face value of Rs 10, while Orient Cement shareholders will get 33 Ambuja shares of face value of Rs 2 each for every 100 Orient shares of face value of Rs 1.
According to a statement, the merger will unlock greater operational efficiencies, optimise manufacturing and logistics, and enable efficient capital deployment.
“These improvements will boost profitability, support capacity expansion, and enhance long-term shareholder returns. The merger will simplify and rationalise the network, branding and sales promotion-related spends. This will help optimise costs and improve margin by at least Rs 100 per metric tonne,” the statement said.
According to the statement, the amalgamation would also eliminate “structural duplication, reduce administrative costs and enable faster, more agile decision-making”.
The Adani Group’s announcement that it plans to merge its cement business, which currently consists of three separate entities — Ambuja Cements, ACC and Orient Cement — into one pan-India entity (Ambuja Cements) will help the group streamline the Rs 35,000 crore business operationally, as well as through reduced costs.
The Adani Group acquired Switzerland-based Holcim’s entire stake in ACC and Ambuja Cement back in 2022, marking its entry into the cement business.
Later, in 2024, the Adani Group also acquired Orient Cement. Between 2023 and 2024, it also acquired Penna Cement and Sanghi Industries, and their scheme of amalgamation is also at different stages of approval.
