Consolidation in Indian Construction Industry: Ambuja Cements Acquires Sanghi Industries and Penna Cement

Indian Billionaire Gautam Adani Acquires Cement Businesses To Expand

In a move to solidify its position in the construction boom-driven market, Indian billionaire Gautam Adani’s Ambuja Cements has approved a merger with two other companies, Sanghi Industries and Penna Cement. The acquisition aims to streamline operations and increase efficiency, ultimately enhancing shareholder value.

As part of this deal, shareholders of Sanghi will receive 12 shares of Ambuja for every 100 shares they hold. This strategic move is expected to complete within the next year after obtaining necessary approvals from stakeholders and regulators. Upon completion, the merged entity will have a cement production capacity of 89 million tonnes across 22 manufacturing plants and 21 grinding units nationwide.

Adani’s rapid expansion in the cement industry has led to intense competition with fellow billionaire Kumar Mangalam Birla, whose Ultratech Cement remains the market leader with an annual output capacity exceeding 150 million tonnes.

Source: www.forbes.com