M&A

M&A

Ambuja Cements acquires Penna Cement in Rs.10,422-Cr deal

Press Release   BSE Announcement   Business Line  

Publicly listed, Mumbai-headquartered Ambuja Cements, an Adani Group firm, is to acquire a 100% stake in Hyderabad-based Penna Cement Industries Ltd (PCIL) at an enterprise value of INR 10,422 crore from the latter’s promoter group, P Pratap Reddy and family. PCIL had reported a turnover of INR 1,241 crore for FY24.PCIL has 14 MTPA cement capacity, of which 10 MTPA is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA). Further, surplus clinker at the Jodhpur plant will support an additional 3 MTPA cement grinding capacity over and above 14 MTPA. The acquisition is expected to strengthen Adani Group's sea transportation logistics.This is Adani Group’s third acquisition since it entered the cement business in September 2022. It had acquired 57% in Sanghi Industries in August 2023 and bought the grinding unit from My Home Industries in April 2024.