Adani-owned Ambuja Cements approves merger Of ACC and Orient Cement to form pan-India Giant

The Adani Group has officially announced that the board of Ambuja Cements has approved the amalgamation of its subsidiaries ACC Ltd and Orient Cement with the company to create a larger cement company.

The transaction will be entirely share-based, with no cash payout. ACC shareholders will receive 328 Ambuja shares of face value Rs 2 each, for every 100 ACC shares of face value Rs 10, while Orient Cement shareholders will get 33 Ambuja shares of face value Rs 2 each for every 100 Orient shares of face value Rs 1.

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According to the statement, “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 merger will simplify and rationalise the network, branding and sales promotion-related spends. This will help optimise costs and improve margin by at least Rs 100 per metric tonne,” the statement mentioned.

According to the statement, the amalgamation would also eliminate “structural duplication, reduce administrative costs and enable faster, more agile decision-making”.

The Adani Group’s announcement that it plans to merge its cement business, which presently consists of three separate entities namely, Ambuja Cements, ACC and Orient Cement, into one pan-India entity (Ambuja Cements) will help the Group streamline the Rs 35,000 crore business operationally, as well as through reduced costs, as it prepares to compete nationally with giant cement companies like the Aditya Birla Group-owned UltraTech as well as smaller and regional cement players across India.

The Adani Group had acquired Switzerland-based Holcim’s entire stake in ACC and Ambuja Cement back in 2022, marking its entry into the cement business. The Adani Group ran Ambuja and ACC together through a common management, as well as a master services agreement for manufacturing.

Later, in 2024, the Adani Group also acquired Orient Cement. Between 2023 and 2024, it also acquired Penna Cement and Sanghi Industries, and their scheme of amalgamation is also at different stages of approval.