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February 10, 2026

These Two Adani Group Companies Will Merge, What It Means For The Market

The CSR Journal Magazine

Ambuja Cements has received approval from the National Company Law Tribunal to merge Sanghi Industries with itself, clearing the final regulatory hurdle for a consolidation move within the Adani Group’s cement business. The decision allows Ambuja to fully absorb Sanghi Industries, simplifying its corporate structure and strengthening its operational footprint, particularly in western India. The merger is part of the group’s broader strategy to build scale and efficiency in a sector closely tied to infrastructure and housing growth.

The NCLT order approves the scheme of arrangement under which Sanghi Industries will be dissolved without winding up, with all its assets and liabilities transferring to Ambuja Cements. Once procedural filings are completed, the merger will take effect from its appointed date, as specified in the scheme.

Why The Merger Was Proposed

Ambuja Cements acquired a controlling stake in Sanghi Industries in 2023, marking the Adani Group’s entry into Sanghi’s cement operations. Since then, the integration of businesses has been underway, with the merger intended to formalise that process and eliminate the complexities of running separate listed entities.

Sanghi Industries brings with it a large integrated cement plant in Gujarat, captive limestone reserves and port-based logistics infrastructure. By merging the two entities, Ambuja is expected to gain better control over production planning, logistics optimisation and cost efficiencies, particularly in servicing western and northern markets. The tribunal noted that the merger would be beneficial to shareholders and creditors of both companies and would not adversely affect public interest.

What Changes For Shareholders And Operations

Under the approved scheme, Sanghi Industries shareholders will receive equity shares of Ambuja Cements in a specified swap ratio, effectively becoming shareholders of the larger, more liquid entity. For Sanghi investors, this offers exposure to a stronger balance sheet and a company with a wider national presence. For Ambuja shareholders, the merger consolidates assets already under the group’s control, with limited dilution relative to the strategic benefits.

Operationally, the merger is expected to reduce administrative overheads, align procurement and logistics, and improve capacity utilisation. Analysts believe the integration could also support margin improvement over the medium term, especially as cement demand remains linked to government-led infrastructure spending and housing projects.

What It Means For The Cement Market

The approval comes at a time when consolidation is reshaping India’s cement sector, with large players seeking scale to compete more effectively on pricing, distribution and efficiency. The Ambuja–Sanghi merger strengthens the Adani Group’s position against established rivals and reinforces its ambition to emerge as one of the country’s dominant cement producers.

For the broader market, the deal signals continued consolidation in capital-intensive industries, where balance sheet strength and logistics advantages are becoming increasingly important. Investors are likely to track how quickly Ambuja realises synergies from the merger and whether the combined entity can translate scale into sustained profitability in a competitive market.

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