Ambuja Cement’s subsidiary companies ACC Limited and Orient Cement will soon do business under the name of Ambuja Cement. On Monday, the board of directors of Adani Group’s cement company Ambuja Cement approved the proposal to merge ACC Ltd and Orient Cement into Ambuja Cement. Ambuja Cement said in a statement that this merger will increase the company’s operational efficiency, making maximum use of production and logistics capabilities. The company said that merging ACC Limited and Orient Cement into Ambuja Cement will enable more effective use of the company’s capital.
The merger is expected to improve margins by at least Rs 100 per tonne.
Ambuja Cement said in its statement, “These reforms will increase the company’s profitability, support capacity expansion and provide better returns to shareholders in the long term.” According to the statement, the merger of the two companies will rationalize expenses related to network, branding and sales promotion. This will reduce costs and is expected to improve margins by at least Rs 100 per tonne. The merger will eliminate structural duplication, reduce administrative costs and make decision-making faster and more agile.
No separate agreement required with subsidiary companies
Adani Group’s cement company further said in the statement, “There will be no need for any separate agreement with ACC, Orient, Panna and Sanghi, because all these subsidiary companies will become an integral part of Ambuja Cement.” Let us tell you that on Monday, the shares of Ambuja Cement closed with a slight gain. Today the company’s shares closed at Rs 540.00, up Rs 0.30 (0.06 percent) on BSE. However, after the news of merger of cement companies, some big action may be seen in the shares of Ambuja Cement on Tuesday. According to BSE data, the current market cap of Ambuja Cement is Rs 1,33,478.47 crore.
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