In a major consolidation move in India’s cement sector, Ambuja Cements, part of the Adani Group, has approved the amalgamation of ACC and Orient Cement with itself. The merger will bring all three companies under a single corporate structure, creating a large pan-India cement player that will directly challenge market leader UltraTech Cement.
Board clears merger and share swap ratios
The board of Ambuja Cements has also approved the share swap ratios for the proposed amalgamation.
Under the scheme:
- ACC shareholders will receive 328 equity shares of Ambuja Cements (face value ₹2 each) for every 100 ACC shares (face value ₹10 each) held.
- Orient Cement shareholders will get 33 equity shares of Ambuja Cements (face value ₹2 each) for every 100 Orient Cement shares (face value ₹1 each) held.
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The shares will be issued to eligible shareholders once the merger receives regulatory and shareholder approvals.
Adani Group calls it a “transformational step”
Commenting on the development, Karan Adani, non-executive director at Ambuja Cements, said the consolidation marks a key milestone for the group’s cement ambitions.
“This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation,” he said, adding that the unified structure would help drive operational excellence, accelerate growth and deliver long-term value to shareholders.
He also highlighted that a strong and resilient balance sheet would allow the merged entity to support future expansion plans more effectively.
What the merger means for operations
According to the company, the amalgamation will unlock significant operational synergies. These include:
- Optimising manufacturing and logistics networks
- Streamlining the overall corporate structure
- Improving capital allocation efficiency
- Strengthening the balance sheet
The merger will also simplify branding, sales promotion and distribution networks across regions. This rationalisation is expected to lower costs and improve margins by at least ₹100 per metric tonne (PMT).
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Bigger scale, sharper competition
Once completed, the merger will create a large, integrated cement company with a nationwide footprint. Industry watchers believe this move will intensify competition in the sector, especially with UltraTech Cement, which currently dominates the Indian market.
For investors, the consolidation signals the Adani Group’s intent to build scale quickly, improve efficiency, and strengthen its position in one of India’s most critical infrastructure-linked industries.
