India Adani Merges ACC And Orient Cement To Create Pan India Platform
The Adani Group has taken a strategic step to consolidate its cement operations by merging ACC and Orient Cement, creating a single, pan-India platform. The board of Ambuja Cements approved the merger, which will be executed through an equity swap at a ratio of 328:100 for ACC and 33:100 for Orient Cement. The swap provides a ~9% premium for Orient Cement shares, while ACC shares are swapped at par based on the announcement-day closing price. Completion is expected within one year, subject to regulatory approvals.
This consolidation follows previous moves, including the merger of Sanghi Cement and the acquisition of Penna Cement, aimed at simplifying the group’s corporate structure and streamlining governance. Post-merger, the promoter’s stake in the combined entity is set to reduce to 60.94% from 67.65%, reflecting broader shareholder participation while retaining majority control. The integration is designed to reduce duplication across corporate functions, agreements, and operations, enabling more effective allocation of resources and capital.Strategically, the merger will allow the Adani Group to optimise its manufacturing and logistics network across multiple plants. Analysts highlight that it could generate cost savings of roughly ₹100 per tonne in branding, sales promotion, and operational efficiencies. Operational synergies are expected to enhance productivity, while established brands like AdaniAmbuja Cements and Adani ACC will continue to operate under a unified corporate structure, leveraging the strongest products in each segment.
Industry experts view the merger as a positive development aligned with Ambuja’s plan to scale cement capacity to 155 million tonnes by FY28, up from the current 107 million tonnes. Targeted cost efficiencies of around ₹530 per tonne and improved operating leverage are expected to create medium-term value for shareholders. The merger is also positioned to improve capital deployment and managerial effectiveness, which is critical for large-scale infrastructure and housing demand in India.From a market perspective, the consolidated entity currently trades at 18.1x, 14.4x, and 11.5x EV/EBITDA for FY26e, FY27e, and FY28e, respectively, according to Bloomberg estimates. Analysts caution that risks such as volatility in pet coke and diesel prices, along with any slowdown in cement demand, could affect projected synergies and operational efficiencies.
Overall, the ACC-Orient merger under the Adani Group strengthens India’s cement sector by combining scale, operational efficiency, and sustainable growth initiatives. By streamlining operations, optimising logistics, and leveraging brand strengths, the group aims to improve profitability, expand capacity, and deliver long-term shareholder value while supporting India’s growing infrastructure and urbanisation requirements.
