Adani Group Business: Gautam Adani-led Adani Group will merge its cement business soon. Adani Group has recently bought many big cement companies in the country, including ACC, Ambuja Cement, and Penna Cement. Now, all these companies will be combined into a single company. Adani Group is trying to complete the merger of these companies as soon as possible.
Adani Is The Second Largest Cement Company
According to a report by Jefferies, Adani Group bought ACC and Ambuja Cement in September 2022 for about $6.4 billion. By buying these companies, Adani Group became the second-largest cement company in the country after UltraTech Cement. Adani management believes that the cost of the merger will not cause any problems. However, the merger work will be taken forward after considering the interests of minority and majority shareholders.
Penna Cement Was Bought This Month
Adani Group bought Sanghi Industries in December last year for Rs 5,185 crore. Money was raised from internal sources for this acquisition. Earlier this month, the company bought Hyderabad-based Penna Cement for Rs 10,420 crore. With this acquisition, the cement production capacity of Adani Group has increased to 89 MTPA. The company has targeted increasing the cement production capacity to 140 MTPA by 2028. Currently, UltraTech Cement of Aditya Birla Group is the largest cement company in the country, with a capacity of 152.7 MTPA.
Ambuja Cement’s Financial Performance Is Improving
Jeffries has said that buying Penna Cement will strengthen Adani Group’s position in South India and marine transport logistics. It will have five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo. On the other hand, Ambuja Cement’s financial performance is also improving. The company’s stock has jumped 22% this year, trading around Rs 657.
