‘No disruption is expected’: Adani Group to not merge ACC, Ambuja cement units

Adani Group’s Chief Executive Officer Ajay Kapur has said that the conglomerate, helmed by Gautam Adani, will continue to use its ACC and Ambuja cement brands to sell cement products and has no plans to merge the entities. This clarification at the annual shareholder meeting, comes after media reports emerged earlier that the group was exploring a merger between the two companies. 

"No disruption is expected in the usage of these legacy brands," said Kapur.

On Thursday, shares of Ambuja Cements ended 0.18 per cent higher at Rs 420.05 on BSE. The market cap of the company rose to Rs 83,536.09 crore. And ACC stock ended 0.01 per cent higher at Rs 1800 on BSE. Market cap of the firm rose to Rs 33,801.71 crore.

Kapur also said that the conglomerate is aiming to improve the cement business’ EBITDA margins by Rs 400-450 per tonne over the next 24 months. The company is also undertaking various measures to bring down production costs by streamlining manufacturing and logistics processes. 

ACC is aiming to add 16 million tonne of new capacity in the next two to five years as India’s cement demand is seen growing at 7-8 per cent, he added. 

Adani Group acquired both Ambuja Cement and ACC from Switzerland’s Holcim in 2022 with $10.5 billion to become the country’s second-largest cement producer behind UltraTech. The company’s new plant in Ametha in Madhya Pradesh is expected to start operations soon. 

Holcim, through its subsidiaries, held 63.19 per cent in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent was held through Ambuja Cements). 

(With Reuters inputs)

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