Adani's Ambuja Cements to acquire 100% of Penna Cement
Cement

Adani's Ambuja Cements to acquire 100% of Penna Cement

Ambuja Cements, part of the Adani Group, will acquire 100% of Penna Cement in a deal worth Rs 104.22 billion, announced. The acquisition will be fully funded through internal accruals. This transaction includes a cement capacity of 14 million tonnes per annum (MTPA) and an under-construction 4.0 MTPA capacity at Jodhpur IU and Krishnapatnam GU, which Penna Cement will complete.

Gautam Adani's $3 billion fund, aimed at dominating the cement market, will see a significant expenditure with this acquisition. This move will enhance Adani Group?s presence in South India and Sri Lanka, directly competing with UltraTech Cement. The company aims to boost its production capacity from the current 89 MTPA to 140 MTPA by 2028, including the 4 MTPA under construction.

Reports also suggest that Adani Group plans further acquisitions, including Saurashtra Cement, Jaiprakash Associates' cement business, and Vadraj Cement, potentially adding another 20.5 MTPA to Ambuja's capacity. These strategic moves are in line with India's growing infrastructure development under the Modi government, with Ambuja Cements aiming to increase its South India market share from 8% to 15% and its pan-India market share by 2%.

Additionally, the acquisition will strengthen Adani's logistics with five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo, facilitating better distribution across peninsular India. Following the announcement, Ambuja Cements' stock rose 4% to a new all-time high.

(Source: ET)

Ambuja Cements, part of the Adani Group, will acquire 100% of Penna Cement in a deal worth Rs 104.22 billion, announced. The acquisition will be fully funded through internal accruals. This transaction includes a cement capacity of 14 million tonnes per annum (MTPA) and an under-construction 4.0 MTPA capacity at Jodhpur IU and Krishnapatnam GU, which Penna Cement will complete. Gautam Adani's $3 billion fund, aimed at dominating the cement market, will see a significant expenditure with this acquisition. This move will enhance Adani Group?s presence in South India and Sri Lanka, directly competing with UltraTech Cement. The company aims to boost its production capacity from the current 89 MTPA to 140 MTPA by 2028, including the 4 MTPA under construction. Reports also suggest that Adani Group plans further acquisitions, including Saurashtra Cement, Jaiprakash Associates' cement business, and Vadraj Cement, potentially adding another 20.5 MTPA to Ambuja's capacity. These strategic moves are in line with India's growing infrastructure development under the Modi government, with Ambuja Cements aiming to increase its South India market share from 8% to 15% and its pan-India market share by 2%. Additionally, the acquisition will strengthen Adani's logistics with five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo, facilitating better distribution across peninsular India. Following the announcement, Ambuja Cements' stock rose 4% to a new all-time high. (Source: ET)

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?