Adani Group subsidiary Ambuja Cements has acquired Penna Cement Industries Ltd (PCIL) for INR104,220m (US$1274m).
Following this latest acquisition Adani Cement's production capacity increased to 89Mta. It would also provide sufficient limestone reserves to Ambuja Cement. By 2028 Adani targets a total production capacity of 140Mta capacity and around 20 per cent market share.
In a regulatory filing, Ambuja Cements Ltd said it will acquire 100 per cent shares of PCIL from existing promoter group, P Pratap Reddy and family, with the deal funded by internal accruals. PCIL will add 14Mta capacity to Adani’s kitty, of which 10Mta is operational. The remaining are under construction at Krishnapatnam in Andhra Pradesh (2Mt) and Jodhpur, Rajasthan (2Mt). Ambuja Cements said they will be completed within 6-12 months.
PCIL’s operational capacities are largely across Andhra Pradesh and Telangana as the acquisition solidifies the conglomerate’s presence in southern India. The company expects to complete the acquisition within 3-4 months.
