Ambuja Cements
Big cement shake-up: Ambuja-ACC-Orient merger to create pan-India giant
Mumbai/IBNS: Adani Group’s Ambuja Cements has announced the merger of its subsidiaries—ACC Ltd and Orient Cement Ltd—with the parent company, a move aimed at creating a pan-India cement powerhouse, media reports said.
The merger is expected to be completed within the next 12 months, subject to regulatory approvals.
As per the share-swap ratio approved by the board, Ambuja Cements will issue 328 equity shares of face value Rs 2 each for every 100 equity shares of ACC with a face value of Rs 10 each, to eligible ACC shareholders.
Similarly, for every 100 equity shares of Orient Cement with a face value of Re 1 each, Ambuja Cements will issue 33 equity shares of face value Rs 2 each to eligible Orient Cement shareholders.
The merger is expected to deliver significant operational synergies by optimising manufacturing and logistics networks, streamlining the corporate structure, strengthening the balance sheet and enabling more efficient capital allocation to support growth and enhance market leadership.
The consolidation will also help simplify and rationalise branding, network and sales promotion-related expenditures, leading to cost optimisation and margin improvement of at least Rs 100 per metric tonne (PMT). The company said the merger will aid in achieving targeted cost efficiencies, margin expansion and growth metrics.
The move is expected to strengthen Ambuja Cements’ competitive position against market leader UltraTech Cement of the Aditya Birla Group.
Commenting on the development, Karan Adani, Non-Executive Director of Ambuja Cements Limited, said the consolidation marks a transformational step towards building a globally competitive, integrated cement and building materials company.
“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 said.
He added that the merger builds on the group’s proven track record and positions the unified entity to drive efficiency and productivity, supported by a robust and resilient balance sheet to fund future growth initiatives.
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