Ambuja Cements saw a 3% boost in its share price today after revealing its plan to fully acquire Penna Cement for Rs 10,422 crore. This strategic acquisition has been well-received by analysts, with positive endorsements from firms like Jefferies and Morgan Stanley. They are optimistic about the potential for volume growth and how this move fits into Adani Group’s broader expansion plans.
On Thursday, Adani Group’s Ambuja Cements announced its plan to acquire Hyderabad-based Penna Cement Industries Ltd (PCIL). The acquisition is set at an enterprise value of Rs 10,422 crore. This marks the group’s third acquisition since entering the cement industry in September 2022. Ambuja Cements will purchase 100 percent of PCIL’s shares from its current promoters, P Pratap Reddy and family.
This acquisition is set to strengthen Ambuja’s market position and increase its operational capabilities in the cement industry. Thus marking a significant milestone for the company.
Ambuja Cements Penna Deal Boosts Its Position
Analysts are enthusiastic about Ambuja Cements’ acquisition of Penna Cement Industries. They predict it will propel the company into the top three cement producers in South India. This significant move solidifies Ambuja’s market presence in the southern region. The acquisition also underscores its emergence as a leading player across India.

Currently, Penna Cement operates with a capacity of 10 million tonnes per annum (mtpa. Its is in the process of adding another 4 mtpa. This expansion includes 2 mtpa at Krishnapatnam and 2 mtpa at Jodhpur. Both of which are expected to be completed within the next six to twelve months.
Thursday’s announcement marks Adani Group’s third acquisition in the cement sector since it took promoter control of Ambuja-ACC in September 2022. In FY24, Ambuja Cement acquired Sanghi Industries’ cement capacity in Gujarat. Additionally, in April, the Adani company agreed to acquire MyHome Industries’ grinding unit in Tamil Nadu.