Adani's Ambuja Cements Acquires Penna Cement for Rs 10,422 Crore

Ambuja Cements, part of the Adani group, has announced its acquisition of Penna Cement Industries Ltd. This strategic move, valued at Rs 10,422 crore, will increase Adani's cement production capacity to 89 MTPA and enhance its presence in southern India.

PTI | New Delhi | Updated: 13-06-2024 18:02 IST | Created: 13-06-2024 18:02 IST
Adani's Ambuja Cements Acquires Penna Cement for Rs 10,422 Crore
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Ambuja Cements, an integral Adani group firm, has officially announced the acquisition of Penna Cement Industries Ltd (PCIL) at a substantial enterprise value of Rs 10,422 crore. The binding agreement for this acquisition will significantly expand Adani's capacity, adding 14 million tonnes per annum (MTPA).

This strategic acquisition, securing 100% shares of PCIL from its current promoter group headed by P Pratap Reddy and his family, breaches a new threshold for Adani, bringing their total capacity to an impressive 89 MTPA. Penna Cement boasts facilities in Andhra Pradesh, Telangana, and an under-construction site in Rajasthan.

The acquisition augments Adani's sea transportation logistics with bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi, and Colombo, reinforcing its market position pan-India by 2% and in South India by 8%. This move is set to significantly boost Adani's cement market share and operational efficiency.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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