Ambuja Cement to merge with subsidiaries ACC and Orient Cement; board approves proposal

Ambuja Cement’s subsidiaries, ACC Limited and Orient Cement, will soon operate under the Ambuja Cement brand name. The board of directors of Adani Group’s cement company, Ambuja Cement, has approved the proposal to merge ACC Limited and Orient Cement with Ambuja Cement. In a statement, Ambuja Cement said the merger will increase the company’s operational efficiency and maximize the utilization of production and logistics capabilities. The company added that merging ACC Limited and Orient Cement into Ambuja Cement will enable more effective utilization of the company’s capital.

Merger expected to improve margins by at least Rs 100 per ton

Ambuja Cement stated, “These improvements will enhance the company’s profitability, support capacity expansion, and provide better returns to shareholders in the long term.” According to the statement, the merger of the two companies will rationalize expenses related to network, branding, and sales promotion. This will reduce costs and is expected to improve margins by at least Rs 100 per ton. The merger will eliminate structural redundancies, reduce administrative costs, and make the decision-making process faster and more agile.

No separate agreements required with subsidiaries

The Adani Group’s cement company further stated, “No separate agreements will be required with ACC, Orient, Panna, and Sanghi, as all these subsidiaries will become an integral part of Ambuja Cement.” According to BSE data, Ambuja Cement’s current market capitalization is Rs 1,33,478.47 crore.