Adanis accelerates ACC-Ambuja integration to unlock synergies
Cement

Adanis accelerates ACC-Ambuja integration to unlock synergies

Last year, the Adani Group, headed by billionaire Gautam Adani, paid approximately $10.5 billion to Holcim of Switzerland for the shares in ACC and Ambuja Cements.

The background process for integrating the activities of ACC Ltd and Ambuja Cements has been started by the Adani Group, preparing the way for their legal merger and unification under the banner of Adani Cements.

Last year, the Adani Group, headed by billionaire Gautam Adani, paid nearly $10.5 billion to Swiss company Holcim for the rights to ACC and Ambuja Cements. The two businesses ran independently under Holcim, each with a distinct environment.

Merger and cost efficiency

It has been uncertain when the two businesses will merge under Adani, but the group has said that it will, with the only remaining question being "when."

A date or deadline for the merger was not provided by business representatives at analyst roadshows by the group last week in Singapore and Hong Kong. They told analysts that the merger's structure was being reviewed, but sources claim that the process of integrating operations and achieving cost savings is moving along at an astonishing rate.

In addition to cost reductions, the merger is about synergies, which have become crucial for the firm given its debt profile and responsibilities.

For instance, as a prelude to the merger, overlapping positions among personnel are being reduced and reorganized to eliminate duality in tasks and remove ambiguities in the reporting structure.

Jobs were reorganized last week in Mumbai, and key corporate roles were moved to Ahmedabad, where control had changed. The procedure of the merger includes this. To simplify employee responsibilities across verticals, the two businesses share regional heads. Personnel are being transferred between the two businesses.

Operations

On the operations side, supply chain, sourcing, and procurement connections are being linked, and expenses associated with logistics and warehousing are being reduced by making greater use of the facilities owned by both businesses.

Due to values, swap ratios, and regulatory approvals, the legal merger is probably going to take some time.

According to Avinash Gorakshakar, Head of Research at Profitmart Securities, the merger procedure will probably take longer than a year because the group's top priorities right now are creating cash flow and carrying out their expansion ambitions.

In terms of branding, he claimed that both brands would likely be utilized in the areas where they are well-known. "ACC and Ambuja both have great brand presence, so they are not likely to be in a rush to rebrand." It will eventually need to be rebranded with the Adani name, but not right away, he claimed.

Ambuja Cements is the dominating company in the North and West, whereas ACC is well-represented in the East and Central regions of the nation.

See also:
Adani group: Big plans laid out for cement
Adani group prepays financing for Ambuja cement


Last year, the Adani Group, headed by billionaire Gautam Adani, paid approximately $10.5 billion to Holcim of Switzerland for the shares in ACC and Ambuja Cements. The background process for integrating the activities of ACC Ltd and Ambuja Cements has been started by the Adani Group, preparing the way for their legal merger and unification under the banner of Adani Cements. Last year, the Adani Group, headed by billionaire Gautam Adani, paid nearly $10.5 billion to Swiss company Holcim for the rights to ACC and Ambuja Cements. The two businesses ran independently under Holcim, each with a distinct environment. Merger and cost efficiency It has been uncertain when the two businesses will merge under Adani, but the group has said that it will, with the only remaining question being when. A date or deadline for the merger was not provided by business representatives at analyst roadshows by the group last week in Singapore and Hong Kong. They told analysts that the merger's structure was being reviewed, but sources claim that the process of integrating operations and achieving cost savings is moving along at an astonishing rate. In addition to cost reductions, the merger is about synergies, which have become crucial for the firm given its debt profile and responsibilities. For instance, as a prelude to the merger, overlapping positions among personnel are being reduced and reorganized to eliminate duality in tasks and remove ambiguities in the reporting structure. Jobs were reorganized last week in Mumbai, and key corporate roles were moved to Ahmedabad, where control had changed. The procedure of the merger includes this. To simplify employee responsibilities across verticals, the two businesses share regional heads. Personnel are being transferred between the two businesses. Operations On the operations side, supply chain, sourcing, and procurement connections are being linked, and expenses associated with logistics and warehousing are being reduced by making greater use of the facilities owned by both businesses. Due to values, swap ratios, and regulatory approvals, the legal merger is probably going to take some time. According to Avinash Gorakshakar, Head of Research at Profitmart Securities, the merger procedure will probably take longer than a year because the group's top priorities right now are creating cash flow and carrying out their expansion ambitions. In terms of branding, he claimed that both brands would likely be utilized in the areas where they are well-known. ACC and Ambuja both have great brand presence, so they are not likely to be in a rush to rebrand. It will eventually need to be rebranded with the Adani name, but not right away, he claimed. Ambuja Cements is the dominating company in the North and West, whereas ACC is well-represented in the East and Central regions of the nation. See also: Adani group: Big plans laid out for cementAdani group prepays financing for Ambuja cement

Next Story
Infrastructure Urban

Larsen & Toubro Secures Contract from Defence Ministry

The Ministry of Defence, Government of India, has awarded a significant contract to Larsen & Toubro (L&T) for supplying K9 Vajra-T Artillery Platforms to the Indian Army. As per the company's project classification, the contract is valued between Rs 50 billion and Rs 100 billion. The K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform, is an adaptation of the globally renowned South Korean K9 Thunder howitzer. It has been co-developed by L&T and Hanwha Aerospace to meet the Indian Army's specific operational needs across diverse terrains, including deserts, plains, and..

Next Story
Real Estate

Delhi-NCR Housing Market sees 25% Sales Growth

The Delhi-NCR property market has maintained its momentum during the December quarter, with housing sales and new supply estimated to grow by 25 per cent and 59 per cent, respectively, as reported by PropEquity. Data from the real estate analytics firm suggests that housing sales in Delhi-NCR are likely to rise to 12,915 units during the October-December period of this year, compared to 10,354 units in the corresponding period of the previous year. New supply in the region is expected to increase significantly, reaching 11,223 units, a 59 per cent rise from 7,072 units in the year-ago quarter..

Next Story
Infrastructure Urban

DDC Approves Five Key Projects Under Kasaragod Development Package

The District Development Committee (DDC) has approved a budget of Rs 100.08 million for five key projects under the Kasaragod Development Package. This funding is part of the Rs 700 million allocated in the State budget for the 2024-25 financial year, with administrative approval formally amended to incorporate these initiatives. The decision was made during a meeting chaired by District Collector K. Inbasekar on Saturday, December 21. The approved projects include Rs 40.99 million for constructing Udayapuram Thungal Road in Kottom Belur grama panchayat and Rs 20.56 million for setting up a ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000