ACC and Ambuja Cement, part of the LafargeHolcim group companies, have renewed the Master Supply Agreement for three years.
The Board of Directors of both companies met separately to approve renewal of the existing Master Supply Agreement from May 2 on the same terms of the existing agreement, it said.
In 2018, both companies entered into agreement for supply of cement, clinker and other raw materials such as fuels, fly ash, slag and gypsum besides spare parts used in the factories.
As per the pricing formula, both the companies will offer five per cent discount for cement supply to each other on their average net selling price.
ACC has a cement capacity of 33.5 million tonnes, while Ambuja has a capacity of 29.65 million tonnes.
In 2005, LafargeHolcim acquired majority stake in Ambuja Cement and ACC and tried to merge them, but called it off in 2018.