Adani Group 3rd Acquisition in 2024
Ambuja Cements a part of the Adani Group, has acquired Penna Cement Industries Ltd (PCIL) at an enterprise value of Rs.10,422 crore. However, this acquisition will significantly increase Ambuja Cement’s capacity and market share, particularly in South India.
Penna Cement acquisition is expected to give positive result to Adani Group’s like:
- Add 14 million tonnes per annum (MTPA) to Ambuja Cement’s existing capacity, bringing the total to 89 MTPA for the Adani Group.
- Increase the Adani Group’s share in the cement market by 2% pan-India and 8% in South India.
- Penna Cement’s operations in Andhra Pradesh, Telangana, and Rajasthan will boost Ambuja’s presence in the region.
Penna Cement’s acquisition is the third for the Group. Adani Group entered the cement business in September 2022 and is in line with their strategy to expand in the cement sector.
The A Group, also has made two previous acquisitions in the cement industry before the recent acquisition of Penna Cement:
- Sanghi Industries: In early 2024, Ambuja Cement acquired Sanghi Industries. A cement manufacturer based in Gujarat. This acquisition added cement capacity and strengthened Ambuja’s presence in the western region of India.
- MyHome Industries: In April 2024, Ambuja Cement agreed to acquire a grinding unit from MyHome Industries in Tamil Nadu. The acquisition aimed to expand Ambuja’s footprint in the southern region and enhance its production capabilities.
These acquisitions, showcase the Adani Group’s aggressive strategy to expand its presence and market share in the Indian cement industry.