Adani Cements to Slash Logistics Costs by 400% with Penna’s Sea Route Network: CFO Vinod Bahety

Mumbai: Adani Cements’ recent purchase of Penna Cement will help reduce its logistics costs by increasing the use of sea routes for transportation, according to CFO Vinod Bahety. Currently, Adani Cements transports less than 2% of its cargo by sea, but with Penna’s five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo, this figure is expected to rise to 10% by 2027-28.

Boost to Sea Route Transportation

Bahety highlighted that Penna Cement’s advanced sea logistics infrastructure is a major benefit, especially for servicing peninsular India. “Many companies have cement, but Penna’s vision in sea logistics stands out,” he said.

Using sea routes could cut costs by ₹300-400 per tonne for transported cargo, with overall savings of ₹50-70 per tonne.

Enhanced Logistics Plan

Adani Cements already uses sea routes at Sanghi Industries and Ambuja Cements, but Bahety expects a significant enhancement in their sea logistics strategy within 6-12 months following the acquisition.

Details of the Acquisition

Earlier this week, Adani Cements acquired Hyderabad-based Penna Cement for ₹10,422 crore. This acquisition, which includes Ambuja Cements, ACC, and Sanghi Industries, boosts Adani Cements’ production capacity to nearly 79 million tonnes. The company aims to increase this to 96 million tonnes by the end of the current fiscal year and to 110 million tonnes by FY26.

Immediate Capacity Increase

Penna Cement adds 10 million tonnes of ready capacity, with an additional 2 million tonnes under construction at both Jodhpur and Krishnapatnam. The surplus clinker in Rajasthan supports a 3-million tonne grinding capacity.

Bahety mentioned, “We are immediately adding 17 million tonnes of capacity, nearly 20% of our existing capacity.” Adani Cements has a goal to reach 140 million tonnes by FY28. Recently, ET reported that Adani Cements has allocated $3 billion for acquisitions as it aims to surpass UltraTech Cement as the largest cement producer in India within the next 3-4 years.