NEW DELHI: In a significant move that will reshape India’s cement industry, the board of Ambuja Cements Limited has approved the amalgamation of ACC Limited and Orient Cement Limited. This strategic consolidation, part of the Adani Group’s broader vision, aims to create a unified "One Cement Platform" and a pan-India powerhouse in the building materials sector.
The merger is expected to be completed within the next year, pending requisite regulatory approvals.
This consolidation brings together two of the country's most established brands—Ambuja and ACC—under a single corporate structure. While the corporate entity will be unified, the company confirmed that the ‘Adani Ambuja Cements’ and ‘Adani ACC’ product brands will continue to operate as usual in their respective markets.
Under the approved schemes of amalgamation, Ambuja Cements will issue new shares to eligible shareholders of the merging entities. For ACC shareholders, it will issue 328 equity shares of Ambuja (face value Rs. 2) for every 100 shares of ACC (face value Rs. 10).
For Orient Cement Shareholders, it will issue 33 equity shares of Ambuja (face value Rs. 2) for every 100 shares of Orient Cement (face value Re. 1).
The company in a media statement said that the move is a central component of Ambuja Cements’ aggressive growth strategy, which targets increasing production capacity from the current 107 MTPA to 155 MTPA by FY28.
The merger is designed to unlock significant value through streamlined operations and cost optimization. The company anticipates improving margins by at least Rs 100 per metric tonne (PMT) through optimized manufacturing and logistics networks.
The unified structure will eliminate administrative duplication, rationalize branding and sales spends, and accelerate decision-making.
According to the company, a stronger, debt-free balance sheet will allow for more efficient capital deployment to support future capacity expansion.
"This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation," said Karan Adani, Non-Executive Director of Ambuja Cements.