Ambuja Cements to merge ACC, Orient Cement into a 'One Cement Platform'

Ambuja Cements, part of Adani Group, got board approval to merge with ACC and Orient Cement, creating a single 'One Cement Platform'. The consolidation aims to boost operational excellence, accelerate growth, and build a globally competitive entity.

In a significant development for India's cement sector, Ambuja Cements Limited, part of the Adani Group, has received approval for two separate Schemes of Amalgamation from its Board of Directors to merge ACC Limited and Orient Cement Limited, establishing a single consolidated 'One Cement Platform'.

Karan Adani, Non-Executive Director, Ambuja Cements Limited, Adani Group, said this consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation. "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. This merger builds on our already proven track record to further position the business to drive efficiency and productivity. A robust and resilient balance sheet positions the unified strong entity to effectively support future growth initiatives," he said.

A Strategic Move for Integrated Growth

This consolidation is a major step for Adani Group's cement business, creating an integrated, stronger entity with greater scale, efficiency, and financial strength, according to a release.

It mentioned advantages including operational and financial synergies, simplified corporate structure, strong and debt-free balance sheet, direct shareholding in a stronger entity, enhanced scale and market leadership, stakeholder-centric approach and unified ESG leadership.

Unlocking Synergies and Efficiencies

"The merger will unlock greater operational efficiencies, optimise manufacturing and logistics, and enable efficient capital deployment. These improvements will boost profitability, support capacity expansion, and enhance long-term shareholder returns," the release said.

It said the amalgamation eliminates structural duplication, reduces administrative costs, and enables faster, more agile decision-making. In addition, there will be no specific MSA required with ACC, Orient, Penna & Sanghi as these subsidiaries will become an integral part of Ambuja Cements.

The initiative aligns with Ambuja Cements' strategic plan to increase cement production capacity from 107 MTPA to 155 MTPA by FY28, facilitating efficient capital allocation and prompt adaptation to market requirements.

"The strategic amalgamation is not just a merger of companies; it is a powerful step forward for shareholders, offering direct participation in a stronger, more agile, and future-ready leader in the cement industry," the release said.

Brand Identity and Market Presence

"The proposed amalgamation brings together two of India's most established and trusted cement brands (i.e. Ambuja & ACC) under one unified corporate structure. The 'Adani Ambuja Cements' & 'Adani ACC' brands will continue to operate as usual, with their leading product brands in respective markets," it added.

Future Mergers and ESG Framework

The Scheme of Amalgamation of Sanghi Industries and Penna Cement with Ambuja are also at different stages of approval. Post approvals, all stakeholders will engage with a single, unified company.

The merged entity will benefit from a consolidated ESG framework to accelerate the adoption of renewable energy, low-carbon cement solutions, and sustainable practices, the release said.

Projected Outcomes and Cost Savings

"The merger will create a pan-India Cement Powerhouse. The merger will deliver operational synergistic benefits by optimising manufacturing and logistics networks, streamlining corporate structure, strengthening balance sheet and facilitating efficient capital allocation to support growth and bolster market leadership," the release said.

"The merger will simplify and rationalise the network, branding and sales promotion related spends. This will help to optimise costs and improve margin by at least Rs 100 PMT. Merger will facilitate achieving targeted cost, margin expansion and growth metrics," it added.

Details of Amalgamation Scheme

The release said that for every 100 equity shares of ACC with a face value of Rs. 10 each, Ambuja will issue 328 equity shares with a face value of Rs 2 each, to eligible shareholders of ACC.

For every 100 equity shares of Orient Cement with a face value of one rupee each, Ambuja Cements will issue 33 equity shares with a face value of Rs two each, to eligible shareholders of Orient Cement.

Subject to requisite approvals, transaction expected to be completed over next one year. (ANI)

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