Sanghi Industries & Penna Cement to Merge with Ambuja Cement: Share Swap Details

Adani Group’s Ambuja Cements announced today (December 17) the merger of its subsidiaries Sanghi Industries and Penna Cement Industries with itself. Under the scheme of arrangement, Sanghi Industries shareholders will receive 12 shares of Ambuja Cements for every 100 shares held.

Acquisition of Sanghi Industries Last Year

Last year, the company acquired Sanghi Industries for approximately ₹5,185 crore. Ambuja Cements aims to increase its total cement production capacity to over 100 MTPA by the end of this financial year. Recently, the company also announced the acquisition of a 46.8% stake in Orient Cement Limited.

Merger to Enhance Competitiveness and Efficiency

Ajay Kapoor, CEO of Adani Group’s cement business, stated that the merger aims to make the company more competitive and efficient, enhancing shareholder value. Improved working capital management and internal funding will support business operations effectively.

Penna Cement’s Operations and Expansion Plans

Penna Cement operates four integrated plants in Andhra Pradesh and Telangana and a grinding unit in Maharashtra, with an operational capacity of 10 MTPA. Additionally, two plants with a combined capacity of 2 MTPA are under construction in Krishnapatnam and Jodhpur, expected to be completed within the next 8-12 months. Penna Cement also operates five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo (Sri Lanka).