Ambuja Cements Approves Merger of ACC and Orient Cement to Create a Unified Pan-India Cement Platform

In a landmark move for India’s cement industry, Ambuja Cements Limited, part of the Adani Group, has received board approval to amalgamate ACC Limited and Orient Cement Limited into a single consolidated entity. The strategic consolidation aims to build a unified “One Cement Platform” with enhanced scale, efficiency, and long-term growth visibility across India.

According to the company, the merger is designed to unlock significant operational and financial synergies by optimising manufacturing footprints, logistics networks, and procurement systems. By streamlining the corporate structure and eliminating duplication, Ambuja Cements expects to improve decision-making speed, reduce administrative costs, and strengthen capital allocation efficiency. The company has indicated that cost optimisation measures could improve margins by at least Rs 100 per tonne over time.

The approved share swap ratios underline the structured nature of the amalgamation. For every 100 equity shares of ACC with a face value of Rs 10 each, Ambuja Cements will issue 328 equity shares of Rs 2 each. Similarly, for every 100 equity shares of Orient Cement with a face value of Re 1 each, shareholders will receive 33 equity shares of Rs 2 each in Ambuja Cements. Subject to statutory and regulatory approvals, the transaction is expected to be completed within the next year.

Commenting on the development, Karan Adani, Non-Executive Director at Ambuja Cements, said the consolidation represents a transformational step toward building a globally competitive and integrated cement and building materials organisation. He noted that the unified structure would help accelerate growth, enhance productivity, and deliver sustainable long-term value to stakeholders, supported by a robust and resilient balance sheet.

Post-merger, Ambuja Cements plans to advance its capacity expansion roadmap, targeting an increase in cement production capacity from 107 million tonnes per annum to 155 million tonnes per annum by FY28. Importantly, established brands such as Ambuja and ACC will continue to operate independently in their respective markets, ensuring brand continuity while benefiting from shared operational strengths.

The amalgamation is also aligned with the group’s broader ESG ambitions, enabling a unified sustainability framework focused on renewable energy adoption, low-carbon cement solutions, and responsible manufacturing practices. Overall, the merger marks a significant step in reshaping India’s cement landscape, positioning the combined entity as a stronger, future-ready market leader.