Ambuja Cements completes merger with Penna Cement, strengthens South India footprint

Ambuja Cements has officially completed its merger with Penna Cement Industries Limited, marking a significant milestone in its expansion journey and further strengthening its presence in South India’s cement market. The merger became effective from April 10, 2026, following the completion of all legal and regulatory formalities, according to the company’s filing with the stock exchanges.

The development follows the approval granted by the National Company Law Tribunal (NCLT), Ahmedabad Bench, on March 30, 2026. With the certified copy of the tribunal’s order filed before the Registrar of Companies, Ahmedabad, the scheme of arrangement has now come into force.

With this merger, Penna Cement Industries now stands amalgamated with Ambuja Cements and dissolved without being wound up. The integration is expected to significantly enhance Ambuja’s manufacturing capacity and market reach, especially across the southern states where cement demand continues to remain strong due to infrastructure expansion, housing activity, and industrial development.

The merger is being seen as a strategic move to deepen Ambuja Cements’ footprint in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, and other key southern markets. Penna Cement has established assets and a strong regional presence, making the acquisition highly relevant to Ambuja’s long-term growth plans.

Industry experts believe this consolidation will improve logistics efficiency, optimise clinker and grinding capacities, and strengthen supply chain integration across high-demand regions. With South India continuing to witness investments in roads, urban infrastructure, warehousing, and real estate, the merger positions Ambuja to capitalise on future demand.

The company also informed the exchanges that shareholders of Penna Cement will receive cash consideration in line with the approved scheme.

This merger comes at a crucial time for India’s cement industry, where capacity expansion and regional consolidation are emerging as major themes. For Ambuja Cements, the completion of the Penna Cement merger is expected to support scale-led growth and improve competitiveness in one of the country’s most important cement consumption corridors.