Ambuja Cement Seals the Rs 10,422 Crore Deal in PCIL Acquisition

by IS_Indust
Ambuja Cement

Ambuja Cement has signed an agreement to acquire Penna Cement Industries (PCIL) for Rs 10,422 crore, aiming to boost its production capacity to 140 million tonnes per annum (MTPA) by 2028, according to the Adani Group on Thursday. This acquisition, fully funded through internal accruals, will involve Ambuja purchasing the entire stake of PCIL from its promoter group, P Pratap Reddy and family.

The acquisition will increase Adani Cement’s – the holding company of ACC and Ambuja Cement – total production capacity by an additional 14 MTPA, bringing it to 89 MTPA. It will also enhance Ambuja’s market presence in southern India.

“PCIL’s strategic location and substantial limestone reserves provide an opportunity to increase cement capacity through debottlenecking and additional investment. Importantly, the bulk cement terminals will be a game changer, providing access to the eastern and southern parts of peninsular India, as well as an entry to Sri Lanka via the sea route,” said Ambuja Cement CEO Ajay Kapur.

Of PCIL’s total 14 MTPA capacity, 10 MTPA is operational, with the remaining 4 MTPA under construction—2 MTPA at Krishnapatnam and 2 MTPA at Jodhpur, expected to be completed within the next 6-12 months. Additionally, the surplus clinker at the Jodhpur plant will support an extra 3 MTPA of cement grinding capacity.

Post-acquisition, PCIL’s existing dealers will transition to Adani Cement. Despite this significant addition, UltraTech Cement of the Aditya Birla Group will remain the market leader with a production capacity of 152.7 MTPA. Adani Cement (ACC & Ambuja Cement) will hold the second position, followed by Shree Cement (49.9 MTPA), Dalmia Cement (Bharat) (43.7 MTPA), Nuvoco Vistas (25 MTPA), JSW (19 MTPA), and India Cements (16 MTPA), according to company data.

The total installed production capacity in India currently stands at 541 MTPA.

Read More: Click Here

Related Posts

Leave a Comment