Adani Group Acquires Penna Cement: Cement Sector Giant Expands with Rs 10,422 Crore Deal

Billionaire Gautam Adani’s Adani Group has announced the acquisition of Penna Cement for Rs 10,422 crore. This move will add 14 million tonnes of annual capacity and expand Adani's market share in southern India and Sri Lanka. The acquisition aligns with Adani's strategy to achieve 140 MTPA capacity by FY28.

Billionaire Gautam Adani-led Adani Group on Thursday announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, adding 14 million tonnes of annual capacity to the country's second-largest cement manufacturer.

This strategic acquisition will enhance Adani's market share in southern India and offer entry into Sri Lanka, where Penna Cement Industries Ltd (PCIL) operates a unit through a local subsidiary. ''This acquisition will be fully funded through internal accruals,'' Ambuja Cements noted.

Ajay Kapur, CEO & Whole Time Director of Ambuja Cements, described the acquisition as a ''significant step'' forward in the company's growth journey. The binding agreement has been signed, and Ambuja Cements will acquire 100 percent shares of PCIL from its existing promoter group P Pratap Reddy and family. The company anticipates completing the acquisition within 3–4 months, pending necessary government and regulatory approvals.