Adani’s Ambuja Cements To Integrate Sanghi Industries, Expand Market Dominance

Ambuja Cements, a key company within the Adani Group, has unveiled plans to merge its subsidiaries, Sanghi Industries and Penna Cement Industries. This strategic move aims to consolidate operations, enhance efficiency, and strengthen Ambuja’s position in the cement sector. The merger is expected to streamline processes and bolster the company’s market presence, according to media reports.

As part of the merger with Sanghi Industries, Ambuja Cements will offer shareholders 12 Ambuja shares for every 100 Sanghi shares held. With a 58.08 per cent stake in Sanghi Industries, Ambuja intends to fully integrate the subsidiary, driving growth and operational efficiency under the Adani Group’s umbrella.

“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.”

The merger is set to significantly expand Ambuja’s production capabilities. Post-merger, the company’s production capacity is projected to surpass 100 million tonnes per annum (MTPA) by the end of the fiscal year, an increase from its current 89 MTPA. Ambuja also plans to further ramp up its capacity to 140 MTPA by 2027-28, underscoring its ambitious growth trajectory.

Ambuja Cements anticipates that the consolidation will simplify regulatory processes, improve cost efficiency and centralise cash flow management. These advantages are expected to drive the company’s expansion plans forward.