NCLT Approves Adani Cementation Ambuja Cements Merger

The National Company Law Tribunal (NCLT) has approved the merger of Adani Cementation with Ambuja Cements, consolidating the Adani Group's cement business under one entity to enhance manufacturing capacity and operational efficiency. The merger, effective April 1, 2024, involves a share swap where Adani Enterprises will receive 8.7 million shares of Ambuja Cements, and is expected to yield synergistic benefits such as improved resource utilization, lower overheads, and reduced compliance requirements. Ambuja Cements, part of the Adani Group which is India's second-largest cement manufacturer with over 100 million tonnes per annum capacity, plans to expand further, targeting growth to 118 MTPA by FY 2026 and 140 MTPA by FY 2028. The amalgamation will also allow Ambuja Cements to quickly commence construction at various sites owned by Adani Cementation, which holds significant limestone mining rights in Gujarat and plans a manufacturing unit in Maharashtra. This strategic move, led by billionaire Gautam Adani, aims to strengthen the group’s competitive position in India’s cement sector and increase shareholder value. The NCLT has mandated compliance with all relevant regulations from SEBI and stock exchanges including BSE, NSE, and the Luxembourg Stock Exchange.