Adani Group’s Ambuja Cements Board approves amalgamation of ACC and Orient Cement
The board of directors of Adani group firm Ambuja Cements on Monday, December 22, approved the merger of subsidiaries ACC and Orient Cement to create a single consolidated “One cement platform”.
Ambuja Cements said in a statement that the merger will increase operational efficiency, improve production and logistics and facilitate effective capital deployment.
It also aims to simplify and streamline network, branding and sales promotion expenses, which will enable cost optimization and at least increase margins. ₹100 per metric ton, the company stated.
Details of the merger
Under the proposed merger, par value of each for every 100 shares of ACC ₹On September 10, Ambuja will issue 328 equity shares of face value ₹2 to eligible ACC shareholders.
Meanwhile, for every 100 shares of face value of Re 1 each of Orient Cement, Ambuja Cements will issue 33 shares of face value of Re 1 each. ₹2 of each to the eligible shareholders of Orient Cement.
“Subject to necessary approvals, the transaction is expected to be completed next year,” the company said.
Speaking about the latest approval, Karan Adani, Non-Executive Director, Adani Group Ambuja Cements Limited, said: “This consolidation represents a transformational step in creating a globally competitive, integrated cement and building materials organisation. By combining Ambuja Cements, ACC and Orient Cement under a single corporate structure, we strengthen our ability to drive operational excellence, accelerate growth and deliver sustainable long-term value.”
He added: “This merger builds on our already proven track record to further position the business to increase efficiency and productivity. A solid and resilient balance sheet positions the strong combined entity to effectively support future growth initiatives.”
Ambuja Cements selected for 1st Indo-Swedish CCU Pilot
The latest development comes just days after Ambuja Cements was selected as the first Indo-Swedish Carbon Capture and Utilization (CCU) pilot in the global cement industry.
The company received an Indo-Swedish grant to fund a pre-pilot Technology Feasibility study on Carbon Capture and Utilization (CCU) in partnership with the Indian Institute of Technology Bombay and Eco Tech, Sweden.
“The company became the first cement company to receive an Indo-Swedish grant for pre-pilot Technology Feasibility study for Carbon Capture and Utilization (CCU) in collaboration with Indian Institute of Technology Bombay and Eco Tech, Sweden,” the company said in a statement issued on December 10.
The study highlights the development of scalable, sustainable CO₂ capture and utilization solutions by transitioning from traditional carbon storage to a circular carbon economy that reduces emissions and promotes new green fuels and materials.
