Adani Group Consolidates Cement Operations Under Ambuja Cements

Adani Group will merge Sanghi Industries and Penna Cement with Ambuja Cements to streamline operations and simplify compliance. The merger aims to leverage strengths against competitors like UltraTech Cements. The transaction is expected to finalize in 9-12 months, with enhanced shareholder value and market competitiveness.

The Adani Group announced plans to merge its recently acquired Sanghi Industries and Penna Cement with Ambuja Cements, aiming to consolidate its cement operations into a single unit. The initiative, revealed on Tuesday, is designed to streamline the organizational structure and simplify compliance requirements for effective governance.

This strategic move positions billionaire Gautam Adani's cement arm to better compete with market leader UltraTech Cements, a subsidiary of the Aditya Birla Group. The board of Ambuja Cement approved the scheme of arrangement for the merger during a meeting, targeting completion within 9-12 months, pending necessary approvals.

The merger, according to Adani Group CEO of Cement Business Ajay Kapur, seeks to enhance shareholder value by making the company more competitive and efficient, while also improving working capital management and internal funding for business growth.

(With inputs from agencies.)