Business News: On June 13th, Ambuja Cements, a subsidiary of the Adani Group, announced its plan to acquire 100% of Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore. This acquisition aligns with Adani’s strategy to achieve a production capacity of 140 million tonnes per annum (MTPA) by 2028.

Following the acquisition, PCIL dealers will integrate into Adani Cement Ltd.’s network to enhance operational synergy. This move is expected to boost Adani Cement’s national market share by approximately 2% and around 8% in South India.

“By acquiring PCIL, Ambuja is set to expand its market presence in South India and strengthen its position as a pan-India leader in the cement industry,” stated Ajay Kapur, CEO of Adani Group’s cement business. “PCIL’s strategic location and substantial limestone reserves provide opportunities to increase cement capacity through streamlining and additional investment.”

He added that the bulk cement terminals in Pennar would offer access to the eastern and southern regions of peninsular India and provide a gateway to Sri Lanka via the sea route.

The acquisition will also enhance Adani Cement’s sea transportation logistics, utilizing five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo to serve peninsular India.

PCIL currently operates with a cement production capacity of 10 MTPA out of its total capacity of 14 MTPA. The remaining 4 MTPA is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA), expected to be completed within the next 6 to 12 months.