New Delhi. Adani Group, owned by billionaire businessman Gautam Adani, has decided to merge some of its cement businesses together. Adani Group owns cement companies like Ambuja Cement, ACC, Penna Cement and Sanghi Industries. In this, Penna Cement and Sanghi Industries will be merged with Ambuja Cement. Due to this decision, Sanghi Cement's shares are seeing a huge decline.

Sanghi Industries' stock performance

Shares of Sanghi Industries fell by about 13 percent in early trade on Wednesday. It went to the level of Rs 67.01 intraday on NSE, which is its 52-week low. Shares of Sanghi Industries have been declining for a long time. It has given a negative return of about 15 percent in a month and 35 percent in 6 months. Shares of Sanghi Industries have fallen by 48 per cent in a year. The market cap of Sanghi Industries is Rs 1.78 thousand crore.

Why is the Adani Group merging cement companies?
Ambuja Cements announced the merger of its subsidiaries on Tuesday - Saurashtra-based Sanghi Industries (SIL) and Andhra Pradesh-based Penna Cement Industries Ltd (PCIL). "This consolidation will help us improve our business and make it easier to comply with regulations," Ambuja, the country's second-largest cement maker, said in a statement.

Ambuja competes with UltraTech Cement

This decision will help billionaire Gautam Adani's cement unit to leverage the full potential of Sanghi Industries and Penna Industries. Ambuja Cement is currently competing with Aditya Birla Group firm UltraTech Cements, which is number one in the cement industry. The board of Ambuja Cement has approved the plan to merge Sanghi Industries and Penna Cement Industries together.

Adani Group also owns ACC

Adani Group also owns another cement company ACC Limited. Adani Group says that this merger will happen after getting the necessary approvals. It may take 9 to 12 months. Ambuja Cements holds 58.08 percent of the paid-up equity share capital of Sanghi Industries. It acquired the company in December 2023.