Adani Group's Ambuja Cements Board approves amalgamation of ACC and Orient Cement

The board of Adani group firm Ambuja Cements on Monday, 22 December, approved the amalgamation of subsidiaries ACC and Orient Cement with the aim to establish a single consolidated “One cement platform.”

The merger will enhance operational efficiencies, improve manufacturing and logistics, and facilitate effective capital deployment, Ambuja Cements said in a statement.

It also aims to simplify and streamline the network, branding, and sales promotion expenses, which will enable cost optimisation and increase margins by at least ₹100 per metric tonne, the company noted.

Details of the merger

According to the proposed merger, for every 100 equity shares of ACC, each with a face value of ₹10, Ambuja will issue 328 equity shares with a face value of ₹2 to eligible ACC shareholders.

Meanwhile, for every 100 equity shares of Orient Cement with a face value of Re 1 each, Ambuja Cements will issue 33 equity shares with a face value of ₹2 each, to eligible shareholders of Orient Cement.

“Subject to requisite approvals, the transaction is expected to be completed over the next year,” the company said.

Speaking on the latest approval, Karan Adani, Non-Executive Director – Ambuja Cements Limited, Adani Group, said, “This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation. 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."

He added, "this merger builds on our already proven track record to further position the business to drive efficiency and productivity. A robust and resilient balance sheet positions the unified strong entity to effectively support future growth initiatives.”

Ambuja Cements selected for 1st Indo-Swedish CCU Pilot

The latest development comes days after Ambuja Cements was selected for the first Indo-Swedish Carbon Capture and Utilisation (CCU) pilot in the global cement sector.

The company has obtained an Indo-Swedish grant to fund a pre-pilot Technology Feasibility study on Carbon Capture and Utilisation (CCU), in partnership with the Indian Institute of Technology Bombay and Eco Tech, Sweden.

“The company becomes the first cement company to receive an Indo-Swedish grant for a pre-pilot Technology Feasibility study for Carbon Capture and Utilisation (CCU) in collaboration with the Indian Institute of Technology Bombay and Eco Tech, Sweden,” the company said in a statement issued on December 10.

The study emphasises developing scalable, sustainable CO₂ capture and utilisation solutions, shifting from traditional carbon storage to a circular carbon economy that cuts emissions and fosters new green fuels and materials.