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Adani Group-owned Ambuja Cements announced that it has completed the acquisition of Hyderabad-based Penna Cement Industries Limited by way of entering into a binding agreement.
“The Board of Directors of Ambuja Cements Limited (Company) at their meeting held on June 13, 2024 approved the acquisition of 100 per cent stake in Penna Cement Industries Limited (PCIL) by way of entering into binding agreement,” the company said in a regulatory filing, while adding that the acquisition will make Penna Cement Industries a wholly-owned subsidiary of Ambuja Cements, effective August 16.
Valued at Rs 10,422 crore, the 100 per cent acquisition of shares of PCIL is expected to expand the market presence of Ambuja Cements in south India and reinforce its position as a pan-India leader in the cement industry. The acquisition is to be fully funded through internal accruals.
PCIL has 14 MTPA cement capacity, of which 10 MTPA is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA) and will be completed within 6 to 12 months. Around 90 per cent of the cement capacity comes with railway sidings, and some are supported by captive power plants and waste heat recovery systems. Further, surplus clinker at the Jodhpur plant will support an additional 3 MTPA cement grinding capacity over and above 14 MTPA, Ambuja Cements had stated in an earlier exchange filing.
