Ambuja Cements, a leading company of the Adani Group, has acquired 100 per cent stake in Penna Cement Industries Ltd (PCIL) for Rs 10,422 crore. The acquisition will help Ambuja Cements achieve its target capacity of 140 MTPA by 2028 and increase its market share by 2 per cent pan-India and 8 per cent in south India. The purchase, financed through internal accruals, marks a significant milestone in Ambuja Cement's growth journey.
Ambuja Cements Acquisition: Adani Group Expands Cement Footprint
Background
Ambuja Cements, a subsidiary of the Adani Group, is one of India's leading cement manufacturers. With an annual production capacity of over 32 million metric tons, the company operates 11 integrated manufacturing plants and 8 grinding units across India.
Acquisition of Penna Cement
On August 18, 2023, Ambuja Cements announced the acquisition of 100% stake in Penna Cement Industries Ltd (PCIL) for Rs 10,422 crore. This acquisition marks a significant milestone for Ambuja Cements, as it will:
Benefits of the Acquisition
The acquisition of Penna Cement provides several benefits to Ambuja Cements, including:
FAQs
1. Why did Ambuja Cements acquire Penna Cement?
To increase production capacity, expand market share, and enhance its competitive advantage.
2. How was the acquisition financed?
Through internal accruals.
3. What are the expected benefits of the acquisition?
Increased production capacity, expanded market share, improved profitability, and enhanced competitive advantage.
4. What is the impact of the acquisition on Ambuja Cements' market share?
It will increase its market share by 2% pan-India and 8% in south India.
5. What is Ambuja Cements' long-term growth strategy?
To become a leading global cement player with a production capacity of 140 MTPA by 2028.
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