Key Points:
- Ambuja Cements merger: Ambuja Cements has approved the merger of ACC and Orient Cement to form a unified One Cement Platform in India.
- Cost benefits: The consolidation is expected to improve efficiency and margins by about ₹100 per tonne.
- Growth focus: The combined entity targets 155 million tonnes capacity by FY2028 with a stronger balance sheet.
Ambuja Cements on Tuesday approved plans to merge ACC Limited and Orient Cement into its operations in India, aiming to streamline its cement businesses, cut costs and build a single, consolidated national platform through the Ambuja Cements merger.
Ambuja Cements, part of the Adani Group, said its board approved two separate schemes of amalgamation that will fold ACC and Orient Cement into Ambuja, subject to regulatory and shareholder approvals. The company described the move as a significant step for India’s cement sector.
Board Clears Consolidation of Cement Businesses
The company said the mergers will create what it calls a “One Cement Platform,” bringing Ambuja, ACC and Orient Cement under a single corporate structure. The consolidation under the Ambuja Cements merger is intended to simplify operations, improve efficiency and strengthen the balance sheet.
“In a significant development for India’s cement sector, Ambuja Cements has received board approval to merge ACC Limited and Orient Cement Limited,” the company said in a statement. It added that the combined entity would emerge as a pan-India cement producer with an integrated manufacturing and logistics network.
Ambuja said the proposed amalgamation under the Ambuja Cements merger will eliminate duplication across corporate functions and rationalize branding, marketing and sales promotion spending. The company expects these measures to help improve margins by at least Rs. 100 per metric ton through cost optimization.
The transaction is subject to approvals from regulators, shareholders and other authorities. Ambuja said the process is expected to be completed within one year.
Share Swap Details and Financial Impact
Ambuja outlined share exchange ratios for shareholders of the merging companies. For every 100 equity shares of ACC with a face value of Rs. 10 each, eligible shareholders will receive 328 equity shares of Ambuja with a face value of Rs. 2 each.
For every 100 equity shares of Orient Cement with a face value of Re. 1 each, eligible shareholders will receive 33 equity shares of Ambuja with a face value of Rs. 2 each, the company said.
Ambuja said the simplified structure will remove the need for separate management services agreements with ACC, Orient Cement, Penna Cement and Sanghi Industries, as these businesses will become integral parts of Ambuja following approvals.
The company said the consolidation will support efficient capital allocation and improve the ability to fund expansion, backed by what it described as a strong and debt-free balance sheet. It added that shareholders will gain direct exposure to a larger, more agile cement company while established brands such as Ambuja and ACC will continue operating in their respective markets.
Leadership Sees Structural Shift and Growth Push
Karan Adani, non-executive director at Ambuja Cements, said the Ambuja Cements merger represents a structural shift in the group’s cement business.
“This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organization,” Adani said. “By bringing Ambuja Cements, ACC and Orient Cement under a single corporate structure, we are strengthening our ability to drive operational excellence, accelerate growth and deliver sustainable long-term value.”
He added that a stronger balance sheet following the Ambuja Cements merger allows the unified entity to support future growth initiatives and improve productivity.
Ambuja said the merger aligns with its plan to raise cement production capacity to 155 million tons per year by fiscal year 2028 from the current 107 million tons. The company also said the combined entity will benefit from a consolidated environmental, social and governance framework focused on renewable energy adoption and low-carbon cement solutions.
Ambuja noted that amalgamation plans involving Sanghi Industries and Penna Cement are at different stages of approval. Once completed, stakeholders will engage with a single, unified company under the Ambuja Cements merger structure, it said.
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