Ambuja Cements Board Approves Merger with ACC, Orient Cement

A Major Consolidation in India's Cement Sector

On December 22, 2025, the Board of Directors for Ambuja Cements Limited, a key player in the Adani Group's portfolio, approved two significant schemes of amalgamation. The decision involves merging two of its subsidiaries, ACC Limited and Orient Cement Limited, into the parent company. This strategic move is designed to create a single, consolidated cement platform, streamlining operations and strengthening the company's competitive position across India. The mergers, once completed, are expected to unlock substantial synergies in manufacturing, logistics, and resource allocation, paving the way for improved profitability and accelerated growth.

The Approved Amalgamation Schemes

The board greenlit two separate but related merger proposals. The first scheme 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 currently subsidiaries of Ambuja Cements. This consolidation aims to simplify the corporate structure within the Adani Group's cement business, eliminating redundancies and fostering a more agile decision-making process. The move is a critical step in the group's ambition to build a globally competitive and integrated building materials organization.

Financial Overview and Share Exchange Details

The merger is backed by the strong financial standing of the involved entities. As of March 31, 2025, ACC Limited reported a standalone revenue of ₹21,668.11 Crore and a net worth of ₹18,270.93 Crore. Orient Cement Limited recorded a standalone revenue of ₹2,708.83 Crore with a net worth of ₹1,807.91 Crore. In comparison, Ambuja Cements had a standalone revenue of ₹19,453.58 Crore and a net worth of ₹48,605.65 Crore.

To facilitate the merger, a share exchange ratio has been determined based on a joint valuation report. The details are as follows:

This share swap ensures that shareholders of ACC and Orient Cement will become shareholders of the larger, amalgamated Ambuja Cements entity.

Strategic Rationale Behind the Consolidation

The primary objective of these amalgamations is to achieve significant operational and financial synergies. By unifying manufacturing and commercial functions, the company expects to optimize its supply chain and logistics networks. This will lead to better resource allocation, reduced administrative costs, and the elimination of structural duplication. Karan Adani, Non-Executive Director of Ambuja Cements, stated that the consolidation represents a “transformational step” in building a stronger organization capable of driving operational excellence and delivering sustainable long-term value. The company anticipates that these efficiencies could improve margins by at least ₹100 per metric tonne.

Market Impact and Future Growth

This merger will create a cement powerhouse with a vast manufacturing footprint across India. The simplified corporate structure is expected to enhance agility and strengthen the overall business ecosystem. Post-merger, the promoter shareholding in Ambuja Cements is projected to be approximately 61.63%, with public shareholding at around 38.32%. The consolidation aligns with Ambuja Cements' strategic plan to increase its cement production capacity from 107 MTPA to 155 MTPA by FY28. This will enable more efficient capital allocation and a quicker response to evolving market demands. Importantly, the company has confirmed that the 'Adani Ambuja Cements' and 'Adani ACC' brands will continue to operate in their respective markets.

Regulatory Approvals and Timeline

The proposed schemes of amalgamation are not yet final. They are subject to a series of statutory and regulatory approvals. Key among these is the sanction from the National Company Law Tribunal (NCLT). The company will also need approvals from relevant stock exchanges, the Securities and Exchange Board of India (SEBI), and the respective shareholders and creditors of all three companies. While a specific timeline for these mergers was not provided, similar transactions in the industry typically take between 9 to 12 months to complete, pending the necessary clearances.

Conclusion: A Unified Path Forward

The board's approval marks a pivotal moment for Ambuja Cements and the Adani Group's cement business. By merging ACC and Orient Cement, the company is taking a decisive step to create a more efficient, profitable, and competitive entity. The move is expected to enhance shareholder value by creating a streamlined organization with a robust balance sheet, well-positioned for future growth initiatives. The focus now shifts to securing the required regulatory approvals to bring this vision of a single, powerful cement platform to fruition.