New Delhi: Adani Group will merge its recently acquired Sanghi Industries and Penna Cement with Ambuja Cements to consolidate cement operations in one unit, the conglomerate said Tuesday.
Ambuja Cements, on Tuesday, announced separate schemes of arrangement of its subsidiaries Saurashtra-based Sanghi Industries (SIL) and Andhra Pradesh-based Penna Cement Industries Limited (PCIL).
“This consolidation will help to streamline the organisation structure and simplify compliance requirements for effective governance,” said a statement from the country’s second-largest cement maker.
This will also help billionaire Gautam Adani’s cement arm to leverage the combined strengths of the acquired entities, as it is competing with the Aditya Birla Group firm UltraTech Cements, a market leader in the segment.
The board of Ambuja Cement, in a meeting held on Tuesday, approved the scheme of arrangement with Sanghi Industries and Penna Cement Industries.