Adani Group company Ambuja Cements on Thursday announced the acquisition of Penna Cement Industries Limited (PCIL) at an enterprise value of Rs 10,422 crore. The company said in a statement that both the companies have signed a definitive agreement for this acquisition. Under this agreement, Ambuja Cements will buy 100 percent shares of the company from PCIL's current promoter group P Pratap Reddy and family. The acquisition of Hyderabad-based Penna Cement will increase the cement production capacity of Adani Group by 14 million tonnes per annum.

Total production capacity will increase to 89 million tonnes

With this, the total cement production capacity of Adani Group will increase to 89 million tonnes per annum. Penna Cement has a production capacity of 14 million tonnes per annum in Andhra Pradesh, Telangana and Rajasthan (under construction). With this, the surplus clinker at its Jodhpur plant will create an additional cement grinding capacity of 30 lakh tonnes per annum. This acquisition will also strengthen the maritime transport logistics of the Adani Group. Under this, five bulk cement terminals will be opened in Kolkata, Gopalpur, Karaikal, Kochi and Colombo to serve peninsular India. According to the statement, this acquisition will increase the all-India share of the Adani Group in the cement market by two per cent and eight per cent in South India.

Ambuja Cement Share

The share of Adani Group's cement company Ambuja Cement closed down by 0.63 per cent or Rs 4.20 at Rs 664.30. The 52-week high of this share is Rs 680.20. At the same time, the 52-week low is Rs 404. The market cap of the company closed at Rs 1,63,625.29 crore today.