Adani Group's Ambuja Cements Acquires Penna Cement for ₹10,422 Crore

On Thursday, Ambuja Cements, a subsidiary of the Adani Group, announced its acquisition of Penna Cement Industries Ltd (PCIL) for an enterprise value of ₹10,422 crore. The binding agreement for the acquisition includes the complete purchase of 100% shares of PCIL from its current promoter group, P Pratap Reddy and family.
This strategic acquisition will add 14 million tonnes per annum (MTPA) to Adani Group's cement capacity, raising its total capacity to 89 MTPA. PCIL's facilities are located in Andhra Pradesh, Telangana, and Rajasthan (currently under construction). Additionally, the surplus clinker at PCIL’s Jodhpur plant is expected to support an extra 3 MTPA of cement grinding capacity.
The acquisition is also set to enhance Adani Group's sea transportation logistics, with five bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi, and Colombo, aiming to efficiently serve peninsular India.
This move is projected to increase Adani Group's market share in the Indian cement market by 2% overall, with an 8% increase specifically in South India.
HBL