Adani Group acquires Penna Cement  

Ambuja Cements Ltd, the cement and building material company of the Adani Group, announced the signing of a binding agreement for the acquisition of Penna Cement Industries Ltd (PCIL) at an enterprise value of INR 10,422 crore. Ambuja will acquire 100% shares of PCIL from its existing promoter group, P. Pratap Reddy, and family. The acquisition will be fully funded through internal accruals. 

Ajay Kapur, CEO & Whole Time Director of Ambuja Cements, said “By acquiring PCIL, Ambuja is poised to expand its market presence in South India and reinforce its position as a pan-India leader in the cement industry.” 

PCIL has 14 MTPA (Million Tonnes Per Annum) cement capacity, of which 10 MTPA is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA) and will be completed within 6 to 12 months. Around 90% of the cement capacity comes with railway sidings, and some are supported by captive power plants and waste heat recovery systems. Further, surplus clinker at the Jodhpur plant will support an additional 3 MTPA cement grinding capacity over and above 14 MTPA.