Ambuja Cements Approves Merger of ACC and Orient Cement Units

Ambuja Cement, which is an entity of the Adani Group, takes a step to form a pan-India cement giant by merging ACC and Orient Cement. Two distinct schemes of amalgamation have been passed by the company board, which is a big leap towards a simpler company structure, increased scale, as well as increased competitiveness in the local cement industry.

In the suggested amalgamation, it is proposed that 328 equity shares of Ambuja will be issued upon 100 equity shares of ACC with a face value of 10 each. In the case of Orient Cement, the shareholders will have to be entitled to 33 shares of the Ambuja equity shares of 2 against every 100 shares of the Orient equity shares of 1. The merger is anticipated to be done in 12 months.

Ambuja has indicated that the merger will assist in rationalisation of network operations, branding and sales-promotion expenditures and maximisation of costs and enhancement of margins by at least 100 per metric tonne. The relocation is in tandem with the overall plan of the company to increase the capacity of cement to 155 MTPA by FY28 to enable the company to allocate its capital effectively and respond faster to the demand of the market.

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Commenting on the development, Karan Adani, Non-Executive Director, Ambuja Cements, said, “This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation. By bringing Ambuja Cements, ACC and Orient Cement under a single corporate structure, we are strengthening our ability to drive operational excellence, accelerate growth, and deliver sustainable long-term value.”

The brands of Ambuja and ACC will remain functional in their markets. After the merger, all assets and liabilities of ACC and Orient and all subsidiaries will be combined into Ambuja, which will unlock the operational efficiencies, minimise duplication, and allow speedy decision-making in the organisation.