Adani Group-owned Ambuja Cements on Tuesday announced the merger of its subsidiaries Sanghi Industries Limited (SIL) and Penna Cement Industries Limited (PCIL) with itself. In a regulatory filing, the company said that it has entered into a scheme of arrangement with the two aforementioned companies and the proposed schemes inter ia provide for the amalgamation of SIL and PCIL with Ambuja Cements.
Ajay Kapur, CEO – Cement Business, Adani Group, said, “This merger aims to make our company more competitive and efficient, ultimately enhancing shareholder value. Enhanced working capital management and internal funds will support the growth of our business operations. Unified cash flow management will pool resources for faster expansion and cost savings in administration and governance, thereby simplifying compliance requirements. This advancement through a larger entity will increase market competitiveness and deliver greater value to our shareholders.”
Also ReadITC announces January 1, 2025 as effective date for demerger of its hotel business
Sanghi Industries has a clinker capacity of 6.6 MTPA, cement capacity of 6.1 MTPA, and limestone reserves of approximately 1 billion tonnes. The cement company’s Sanghipuram plant is India’s largest single-location cement and clinker unit by capacity, with a captive jetty and captive power plant, it informed.
Also Read Omnicom-IPG Merger: What do they stand to gain or lose? Venture Catalysts targets to end FY25 by investing in 40 startups Migsun Group ventures into mixed-use development in Greater Noida Air India Express-AIX Connect merger designed to enhance profitability, set to cater different markets than Air India: MD Aloke Singh
Penna Cement Industries, meanwhile, has four integrated plants in Andhra Pradesh and Telangana, along with a grinding unit in Maharashtra. It has an operational capacity of 10 MTPA. Additionally, two plants, with a capacity of 2 MTPA each, are under construction in Krishnapatnam and Jodhpur, expected to be completed within the next 8-12 months. It also has five bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi, and Colombo (Sri Lanka).
Per the exchange filing, Ambuja Cements will issue 12 equity shares of the face value of Rs 2 each for every 100 equity shares of SIL of face value Rs 10 each as recommended by the valuers and accepted by the Board and thereby,
» Read More
