Ambuja Cements Limited, which is part of the Adani Group, has announced the acquisition of Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs. 10,422 crore. This strategic move is aimed at expanding Ambuja Cements' market presence, especially in South India, and is a significant step towards achieving their target of a cement production capacity of 140 million tonnes per annum (MTPA) by 2028.
The acquisition includes 100% shares of PCIL and will be fully funded through internal accruals. PCIL has a total cement capacity of 14 MTPA, with 10 MTPA currently operational. The remaining capacity is under construction and expected to be completed within 6 to 12 months. This acquisition will also strengthen Adani Cement’s sea transportation logistics, as it includes five bulk cement terminals that serve peninsular India and provide an entry to Sri Lanka.
The deal is expected to improve Adani Cement’s market share by approximately 2% pan India and by about 8% in South India. It's a noteworthy development in the Indian cement industry, reflecting the Adani Group's growth and consolidation strategy.
Adani Group aims to become the largest cement manufacturer in India. They have marked $3 billion for multiple cement acquisitions, including Penna Cement, to capture one-fifth of the domestic cement market by FY28 1. The group is focusing on brownfield expansion and has set a target capacity of 140 MTPΑ by 2028.
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The deal is expected to improve Adani Cement’s market share by approximately 2% pan India and by about 8% in South India. It's a noteworthy development in the Indian cement industry, reflecting the Adani Group's growth and consolidation strategy.
Adani Group aims to become the largest cement manufacturer in India. They have marked $3 billion for multiple cement acquisitions, including Penna Cement, to capture one-fifth of the domestic cement market by FY28 1. The group is focusing on brownfield expansion and has set a target capacity of 140 MTPΑ by 2028.
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