India's Ambuja Cements board clears merger of ACC, Orient Cement

The board of Ambuja Cements, part of the Adani Group, has approved two schemes of amalgamation to merge ACC and Orient Cement into the company, creating a consolidated "pan-India cement powerhouse," Ambuja said Dec. 22.

"This initiative aligns with Ambuja Cements' strategic plan to increase cement production capacity from 107 million metric tons/year to 155 million mt/year by fiscal year 2028," the company said in a statement.

The merger aims to yield operational and financial synergies, including the optimization of manufacturing and logistics networks, corporate structures and capital deployment.

The transaction is subject to requisite approvals and is expected to close within the next year, the company said.

The merger is expected to increase margins by at least Rupee 100/mt ($1.12/mt) through a simplified network, branding and sales promotion spending.

Furthermore, "the scheme of amalgamation of Sanghi Industries and Penna Cement with Ambuja are also at different stages of approval," Ambuja said. "Post approvals, all stakeholders will engage with a single, unified company."

Subject to fulfillment, all four entities -- ACC, Orient, Penna and Sanghi -- will be merged into Ambuja, which the company expects will facilitate the achievement of "targeted cost, margin expansion, and growth metrics." Ambuja added that "no specific MSAs would be required."

"This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation," Karan Adani, non-executive director of Ambuja Cements and Adani Group, said.

In FY 2026 (April-March), Ambuja Cements achieved its highest-ever second-quarter series volume, with consolidated sales of Q1 and Q2 combined at 16.6 million mt, up 20.2% year over year, according to the company's latest quarterly report. Stand-alone Q2 sales were at 9.9 million mt, up 20.7% year over year.

For FY 2026, the company sees an uptick in demand, estimated at 7%-8%, with "GST reduction from 28% to 18%, improved economic sentiment, higher investments from both public and private sectors."

Platts, part of S&P Global Energy, last assessed cement clinker FOB Turkey at $45.25/mt on Dec. 18, up 25 cents week over week.