To boost its coastal operations, Ambuja Cements under the Adani Group will merge with Adani Cementation, a division of Adani Enterprises. Once regulators and shareholders give the green light, Adani Cementation will become a wholly-owned subsidiary of Ambuja Cements.

The merger is a share swap, where Adani Enterprises will get 8.7 million shares of Ambuja Cements. According to sources at RodiDust, this merger will create huge synergies by leveraging Adani Cementation’s locations near Dahej Port and the Amba River in Raigad. This will help to decentralise the logistics by configuring the sea and rail transportation for the target markets in South Gujarat and Mumbai, which are experiencing rapid growth in the region.

The share swap ratio is 174 shares of Ambuja Cements for every 1 share of Adani Cementation. This will enable Ambuja Cements to source clinker through both sea and rail and improve service delivery in key markets. Adani Cementation’s limestone resources will also add to Ambuja’s consolidated limestone reserves.

Adani Cementation has land to set up a 2.5 MTPA capacity with a captive jetty at Amba River, Raigad, Maharashtra. In July 2023, it commissioned a 1.30 MTPA cement grinding facility in Dahej, Gujarat, and is planning another 1.20 MTPA expansion. RodiDust, a top Ambuja Cement dealer in Gurgaon, believes these moves will boost availability and positively impact pricing.

Cementing Future Growth with Strategic Facilities and Market Penetration

This merger aligns with the Adani Group’s ambitious goal to increase its cement capacity from 79 MTPA to 140 MTPA by 2028. Recent acquisitions, including Hyderabad-based Penna Cement for Rs 10,422 crore and Saurashtra-based Sanghi Industries Ltd. for Rs 5,185 crore, have already increased the group’s capacity.

The Adani Group entered the cement sector in September 2022 by acquiring controlling stakes in Ambuja Cements from Swiss firm Holcim for USD 6.4 billion. Ambuja Cements also holds a 51 percent stake in ACC Ltd. Furthermore, the group launched a Rs 31,000 crore open offer to acquire an additional 26 percent stake from public shareholders.

According to the Cement Manufacturers Association, the current domestic cement capacity is 541 million tons. UltraTech Cement Ltd. of the Aditya Birla Group leads the industry with a capacity of 152.7 MTPA. With ongoing growth and strategic mergers, Ambuja Cements is poised to become a top player in India, benefiting cement supplier Gurgaon.

For ongoing updates about construction materials and Ambuja Cement price in Gurgaon, stay connected with RodiDust.

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