Adani Group's Ambuja Cements acquires Penna Cement for ₹10,422 crore - Hindustan Times
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Adani Group's Ambuja Cements acquires Penna Cement for 10,422 crore

Jun 13, 2024 09:04 PM IST

As per the deal, Ambuja will acquire 100 per cent shares of PCIL from its existing promoter group, P Pratap Reddy and family.

Ambuja Cement, cement and building material company of Adani Cement and part of Adani Group, announced that it has signed an agreement for the acquisition of Penna Cement Industries Ltd (PCIL) at an enterprise value of Rs. 10,422 crore. As per the deal, Ambuja will acquire 100 per cent shares of PCIL from its existing promoter group, P Pratap Reddy and family.

Gautam Adani, chairman of Adani Group, is seen in Ahmedabad, Gujarat,(Bloomberg)
Gautam Adani, chairman of Adani Group, is seen in Ahmedabad, Gujarat,(Bloomberg)

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Ajay Kapur, CEO & Whole Time Director of Ambuja Cement, “This landmark acquisition is a significant step forward in Ambuja Cement's accelerating growth journey. By acquiring PCIL, Ambuja is poised to expand its market presence in south India and reinforce its position as a pan-India leader in the cement industry. PCIL's strategic location and sufficient limestone reserves provide an opportunity to increase cement capacity through debottlenecking and additional investment.”

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He added "Importantly, the bulk cement terminals (BCTs) will prove to be a game changer by giving access to the eastern and southern parts of peninsular India, apart from an entry to Sri Lanka, through the sea route. We aim to make PCIL highly competitive on cost and productivity and improve its operating performance."

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Penna Cement has 14 MTPA cement capacity. Of this 10 MTPA is operational and the remaining is under construction at Krishnapatnam and Jodhpur and will be completed within 6 to 12 months.

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