Ambuja Cement acquire 100% stake in Penna Cement for Rs 10,422 crore
acquisition of Penna Cement will be funded through internal accruals.
In its edition dated June 13, ET reported that the Adani Group is in talks to acquire Penna Cement. The Group is also evaluating other cement companies for acquisition including Gujarat-headquartered Saurashtra Cement and the cement business of Jaiprakash Associates as well as ABG Shipyard-owned Vadraj Cement.
The acquisition of Penna Cement will increase the installed capacity of the Adani Group by 14 MTPA, bringing the total capacity to 89 MTPA, thus accelerating its progress toward the target of 140 MTPA by 2028.
Ajay Kapur, CEO & Whole-Time Director at Ambuja Cement, stated in a release following the acquisition that PCIL’s strategic location and abundant limestone reserves present an opportunity to increase cement capacity through debottlenecking and additional investments. Importantly, the bulk cement terminals (BCTs) will be game-changers, providing access to the eastern and southern parts of peninsular India, as well as entry to Sri Lanka via the sea route. He believes that the acquisition of Penna Cement will help Ambuja Cement expand its market presence in South India and strengthen its position as a pan-India leader in the cement industry.
Penna Cement, which enhances Adani’s group presence in south India, has a capacity of 14 million tons per annum (MTPA), with only 10 MTPA currently operational. The remaining capacity is under construction at Krishnapatnam (2MTPA) and Jodhpur (2MTPA), expected to be completed within the next six
