Ambuja Cements Ltd has approved the merger of its group companies ACC Ltd and Orient Cement Ltd, a move aimed at consolidating operations, reducing costs, and strengthening its position in India’s highly competitive cement sector.
The decision was taken by Ambuja Cements’ board of directors on December 22, 2025. The merger will be carried out through a share-swap arrangement and will require approvals from shareholders, the National Company Law Tribunal (NCLT), SEBI, and other regulatory authorities. The company expects the process to be completed within 12 months.
Once the merger is implemented, ACC and Orient Cement will be amalgamated into Ambuja Cements, creating a single, integrated cement platform under the Adani Group.
Objective Behind the Merger
According to the company, the primary objective of the merger is to create a “One Cement Platform”, which will allow better coordination across manufacturing, logistics, sales, and distribution.
By integrating the operations of ACC and Orient Cement, Ambuja aims to eliminate duplication of costs, improve supply-chain efficiency, and enhance overall operational performance.
Industry analysts believe the merger could help the company save significantly on logistics and administrative expenses, while also improving profit margins over the medium to long term.
Share Swap Ratio Details
The merger will not involve any cash payment to shareholders. Instead, it will be executed through a share exchange mechanism.
Under the approved scheme:
- ACC shareholders will receive 328 equity shares of Ambuja Cements for every 100 shares of ACC held
- Orient Cement shareholders will receive 33 equity shares of Ambuja Cements for every 100 shares of Orient Cement held
The swap ratios have been determined based on valuation reports and are subject to final regulatory and shareholder approvals.
Capacity Expansion and Growth Strategy
Ambuja Cements has been aggressively expanding its cement manufacturing capacity. The company has already announced plans to increase its capacity from 107 million tonnes per annum (MTPA) to 155 MTPA in the coming years.
The merger is expected to support this expansion by enabling better utilization of assets, faster execution of projects, and a stronger regional footprint across India.
Stock Market Reaction
Following the announcement, shares of Orient Cement recorded a sharp rise, reflecting positive investor sentiment around the merger and the swap ratio offered.
Shares of Ambuja Cements traded steady to higher, indicating market confidence in the company’s long-term strategy.
Meanwhile, ACC shares saw moderate gains, as the merger proposal was largely anticipated by the market.
Overall, market participants viewed the merger as a strategically sound move that could unlock long-term value.
Impact on the Cement Industry
The merger is expected to accelerate consolidation in the Indian cement industry, which has been witnessing increased competition and margin pressure.
With this move, Ambuja Cements will further strengthen its position among the top cement producers in India, enhancing its ability to compete with other large players through scale, cost efficiency, and wider market reach.
Experts believe such consolidation will help large cement manufacturers better manage input cost volatility and improve pricing power over time.
What Lies Ahead
While the board approval marks a key milestone, the merger is still subject to multiple regulatory clearances. Until the process is completed, Ambuja Cements, ACC, and Orient Cement will continue to operate as separate listed entities.
The company has stated that it will keep shareholders informed as the merger progresses through the approval stages.
Source: Adani newsroom
