Adani Group's Strategic Cement Merger.

Adani Group's Ambuja Cements is set to merge Saurashtra's Sanghi Industries and Andhra Pradesh's Penna Cement Industries into its operations. The merger streamlines the organization, enhances efficiency, and strengthens market competitiveness. The completion is anticipated within 9-12 months, pending required approvals.

Adani Group's subsidiary, Ambuja Cements, announced plans to incorporate Saurashtra-based Sanghi Industries and Andhra Pradesh-based Penna Cement Industries into its framework. This strategic merger is projected to streamline the organization and simplify compliance, marking a significant shift in India's cement sector.

Approved during a recent board meeting, the merger awaits necessary regulatory approvals and is expected to finalize within nine to twelve months. As part of the arrangement, Ambuja will offer shareholders new equity in exchange for their holdings in the merged companies.

Adani Group, since acquiring Ambuja Cements in 2022, has expanded rapidly in the sector. With ambitions to reach 140 million tonnes per annum by FY28, the consolidation aligns with their broader market goals, directly competing with industry leader UltraTech Cement.

(With inputs from agencies.)