Ambuja Cements, owned by the Adani Group, announced on June 13th that it will purchase 100% of Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore. This acquisition is part of Adani’s strategy to achieve a capacity of 140 million tonnes per annum (MTPA) by 2028.
The company stated that current PCIL dealers will transition to Adani Cement Ltd.’s network to enhance synergy. This acquisition is projected to increase Adani Cement’s nationwide market share by approximately 2% and by about 8% in South India.
“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,” said Ajay Kapur, chief executive officer of the Adani Group’s cement business. “PCIL’s strategic location and sufficient limestone reserves provide an opportunity to increase cement capacity through streamlining and additional investment.”
He further mentioned that the bulk cement terminals in Pennar will offer access to the eastern and southern regions of peninsular India, as well as provide a gateway to Sri Lanka via the sea route.
According to the company, the acquisition will enhance Adani Cement’s sea transportation logistics, leveraging five bulk cement terminals located at Kolkata, Gopalpur, Karaikal, Kochi, and Colombo to cater to peninsular India.
Penna Cement Industries Ltd (PCIL) currently has an operational cement production capacity of 10 million tonnes per annum (MTPA) out of its total capacity of 14 MTPA. The remaining 4 MTPA capacity is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA), anticipated to be completed within the next 6 to 12 months.