AHMEDABAD: Adani Group-owned Ambuja Cement on Thursday announced a landmark acquisition of Penna Cement Industries Limited (PCIL) at an enterprise value of Rs 10,422 crore. This strategic acquisition was fully funded through internal accruals, the company said. This way, Ambuja will acquire 100 per cent of PCIL’s shares from its current promoter P Pratap Reddy.
Ajay Kapur, CEO & whole time director, Ambuja Cement, said, “The acquisition would strengthen Ambuja’s market presence in South India and bolster its position as a leader in the cement industry.The strategic location and substantial limestone reserves of PCIL present opportunities for capacity enhancement through debottlenecking and additional investment.”
PCIL’s assets include 14 million tonne per annum (MTPA) of cement manufacturing capacity, with 10 MTPA already operational and the remaining 4 MTPA under construction in Krishnapatnam and Jodhpur. The remaining capacity is expected to be completed within the next 6 to 12 months, the company said.
The integration of PCIL’s operations with Ambuja Cement is expected to yield significant synergies, particularly with 90 per cent of the cement capacity supported by railway sidings, captive power plants, and waste heat recovery systems. Additionally, surplus clinker at the Jodhpur plant is projected to support an extra 3 MTPA cement grinding capacity.