Ambuja Cements Merger: ACC, Orient to Form Cement Giant

A Strategic Consolidation in India's Cement Sector

Ambuja Cements, a key player in the Adani Group's portfolio, has received board approval for a significant consolidation move. On December 22, 2025, the company's Board of Directors greenlit two separate schemes of amalgamation to merge its subsidiaries, ACC Limited and Orient Cement Limited, into Ambuja Cements. This strategic decision aims to establish a single, integrated 'One Cement Platform', creating a pan-India cement powerhouse designed for greater scale, efficiency, and financial strength.

This move is a pivotal step in the Adani Group's ambition to build a globally competitive building materials organization. By unifying these entities, the group intends to streamline operations, optimize resource allocation, and enhance its market leadership. The merger is expected to unlock significant value for shareholders by creating a more agile and profitable entity.

Details of the Amalgamation Schemes

The board approved two distinct schemes. The first involves the amalgamation of ACC Limited with Ambuja Cements Limited. The second scheme outlines the merger of Orient Cement Limited with Ambuja Cements. Both ACC and Orient Cement are already subsidiaries of Ambuja, making this a move to simplify the corporate structure and integrate operations more deeply. The transaction is subject to necessary statutory and regulatory approvals, including clearance from the National Company Law Tribunal (NCLT), and is anticipated to be completed within the next year.

Karan Adani, Non-Executive Director at Ambuja Cements, stated, "This consolidation represents a transformational step... By bringing Ambuja Cements, ACC, and Orient Cement under a single corporate structure, we are strengthening our ability to drive operational excellence, accelerate growth, and deliver sustainable long-term value."

Share Exchange Ratios for Shareholders

To facilitate the merger, Ambuja Cements has defined clear share exchange ratios for the shareholders of the amalgamating companies. These ratios have been determined based on valuations provided by independent advisors.

For shareholders of ACC Limited, Ambuja Cements will issue 328 new equity shares (face value of ₹2 each) for every 100 equity shares held in ACC (face value of ₹10 each).

For shareholders of Orient Cement Limited, Ambuja Cements will issue 33 new equity shares (face value of ₹2 each) for every 100 equity shares held in Orient Cement (face value of ₹1 each).

These ratios ensure that shareholders of the merging entities will receive a stake in the larger, consolidated company, allowing them to participate in its future growth.

Financial Health of the Merging Companies

The merger brings together entities with substantial financial standing. The following table provides a snapshot of their standalone financial performance as of March 31, 2025.

Ambuja Cements itself reported a standalone revenue of ₹19,453.58 Crore and a net worth of ₹48,605.65 Crore for the same period. The combined entity will possess a robust balance sheet, positioning it to effectively fund future growth initiatives.

Unlocking Synergies and Operational Efficiencies

The primary rationale behind this amalgamation is the potential for significant synergistic benefits. The company expects the merger to optimize its manufacturing and logistics networks, leading to improved cost structures. The simplification of branding and sales promotion efforts is projected to improve margins by at least ₹100 per metric tonne.

Furthermore, the consolidation will eliminate structural duplication and reduce administrative overheads, enabling faster and more agile decision-making. By unifying manufacturing, supply chain, and commercial functions, Ambuja Cements aims to unlock economies of scale, boost profitability, and enhance long-term shareholder returns. The existing brands, 'Adani Ambuja Cements' and 'Adani ACC', will continue to operate in their respective markets.

Adani Group's Vision for the Cement Business

This merger aligns perfectly with Ambuja Cements' strategic plan to expand its cement production capacity from the current 107 Million Tonnes Per Annum (MTPA) to 155 MTPA by FY28. The integrated structure will facilitate more efficient capital allocation and allow the company to adapt quickly to evolving market demands. The Adani Group entered the cement sector in 2022 and has since made aggressive moves, including the acquisition of Penna Cement and Sanghi Industries, to solidify its position.

The Path Forward

With the board's approval secured, the next steps involve obtaining approvals from shareholders, creditors, and regulatory bodies like the NCLT. The appointed date for the merger of ACC is set for January 1, 2026, while for Orient Cement, it is May 1, 2025. This consolidation is not merely a merger of balance sheets but a strategic step to create a future-ready leader in the Indian cement industry, poised for sustained growth and market dominance.