Investors cheer merger of Ambuja, ACC, Orient

Analysts say move may simplify group structure, unlock synergies

- NIKITA VASHISHT

Investors have put money in Ambuja Cements shares as the cement major has moved to consolidate its operations.

The Adani Group company has proposed to merge its subsidiaries ACC and Orient Cement into the parent entity.

This is a step that analysts believe will simplify group structure, unlock synergies, and strengthen its competitive positioning. Ambuja Cements shares gained 4.3 per cent intraday, while those of Orient Cement and ACC soared 9.8 percent and 1.4 percent, respectively. The shares, however, pared gains to close in the range of -1.37 per cent to 4.18 per cent. By comparison, the BSE Sensex settled 0.05 per cent lower.

After the merger, analysts reckon that Ambuja Cements will emerge as one of the largest cement companies in India by capacity. This is in line with the company’s strategic plan to increase cement production capacity from 107 million tonnes per annum (mtpa) to 155 mtpa by FY28. They highlight operational efficiencies, cost optimisation, and balance-sheet strengthening as key benefits of the move.