NCLT Approves Ambuja Cements and Sanghi Industries Merger

• NCLT approves merger; appointed date fixed as April 1, 2024

• Sanghi shareholders to receive 12 Ambuja shares for every 100 held

• Move supports Ambuja’s 140 MTPA capacity target by 2027–28

National Company Law Tribunal (NCLT) has approved the merger of Sanghi Industries with Ambuja Cements, a company owned by the Adani Group.

The tribunal pronounced its order on February 9, 2026, sanctioning the scheme of arrangement between the two companies and their shareholders. The merger’s appointed date has been fixed as April 1, 2024. However, the scheme will become effective only after completion of all procedural and regulatory formalities outlined in the arrangement. Ambuja Cements confirmed that it will notify stock exchanges once the merger becomes operational.

What the Merger Means

The approval marks a key step in Ambuja Cements’ broader consolidation strategy. The company had announced in December 2024 its intention to merge Sanghi Industries as part of an ongoing restructuring drive, which also includes the integration of Penna Cement Industries.

Under the agreed share swap arrangement, shareholders of Sanghi Industries will receive 12 shares of Ambuja Cements for every 100 shares they hold. Ambuja already holds a 58.08% equity stake in Sanghi, having acquired the company last year in a deal valued at approximately Rs 5,185 crore.

Industry analysts say the merger will allow Ambuja to fully integrate Sanghi’s manufacturing operations, simplify compliance structures, and streamline corporate governance processes. The consolidation is expected to strengthen operational efficiency and reduce duplication of resources across the group’s cement businesses.

Strengthening Production Capacity

Sanghi Industries brings significant manufacturing strength to the table. The company operates a clinker capacity of 6.6 million tonnes per annum (MTPA) and cement capacity of 6.1 MTPA. It also holds substantial limestone reserves estimated at nearly one billion tonnes, ensuring long-term raw material security.

Its flagship Sanghipuram facility in Gujarat is regarded as one of India’s largest single-location cement and clinker plants. The plant benefits from integrated infrastructure, including a captive jetty and a dedicated power plant, which enhances logistical efficiency and cost control.

By absorbing Sanghi’s assets, Ambuja Cements is expected to improve supply chain management and optimize plant utilization across regions. The integration will also support geographic expansion, especially in western India.

Ambuja’s Bigger Growth Plan

The merger aligns with Ambuja Cements’ ambitious goal of scaling total cement capacity to around 140 MTPA by 2027–28. Since becoming part of the Adani Group, the company has been actively pursuing acquisitions to rapidly increase its footprint in the highly competitive Indian cement market.

Company officials have previously stated that consolidation will strengthen cash flow management, improve procurement efficiencies, and accelerate expansion timelines. By combining assets and operations, Ambuja aims to generate stronger shareholder value while reinforcing its position among India’s top cement producers.

For investors and industry observers, the NCLT’s approval removes a major regulatory hurdle and signals progress in one of the sector’s most significant consolidation moves in recent years.

Why This Matters for the Cement Industry

India’s cement sector has witnessed a wave of mergers and acquisitions as companies race to scale operations, reduce costs, and improve market share. Rising infrastructure spending, housing demand, and industrial development continue to drive long-term cement consumption.

The Ambuja–Sanghi merger reflects this broader trend of consolidation aimed at achieving economies of scale. Larger capacity allows companies to negotiate better input costs, manage logistics more effectively, and compete more aggressively in pricing-sensitive markets.

With this approval in place, Ambuja Cements moves one step closer to strengthening its operational base and advancing its long-term growth roadmap.

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