Adani Group Aims To Be India's Largest Cement Manufacturer With $3 Billion Acquisition: Report Adani Group is eyeing a potential $3 billion cement acquisition in lieu of recent boom in the infrastructure sector by the government.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Adani group on X

Adani Group is exploring several potential acquisitions in the cement sector, including Hyderabad-based Penna Cement, Saurashtra Cement of Gujarat, Jaiprakash Associates' cement business, and Vadraj Cement owned by ABG Shipyard. The group is keeping aside a generous amount of $3 billion for these acquisitions to position itself to be India's largest cement manufacturer, reports The Economic Times.

In a bold bid to dominate the cement industry, Adani Group is executing a series of strategic acquisitions, aiming to outpace UltraTech Cement of the Aditya Birla Group and emerge as the leading cement producer in the next three to four years. The Indian cement sector is buoyed by the government's unprecedented infrastructure spending, anticipating a demand spike. Penna Cement's valuation is projected to hit INR 9,000 crore, with its capacity expansion from 10 to 15.5 million tonnes per annum (MTPA) potentially driving up its worth.

Saurashtra Cement, valued at INR 1,487 crore, is scouting for acquisition opportunities. Dalmia Bharat's acquisition of Jaiprakash Associates' cement and power assets for INR 5,666 crore has been stalled by shareholder disagreements since April 2022.

The group is prepared to invest $85-120 per ton in acquiring mid-tier cement companies, especially those with expansion potential, limestone mine access, and packing facilities. This strategy was evident when the Adani Group acquired Sanghi Cement at $100 per ton, a company with a 6.1 MTPA capacity.

Penna Cement boasts a 2.8 MTPA packing terminal. Saurashtra Cement and Jaiprakash Associates have capacities of nearly 5 MTPA and 9.5 MTPA, respectively, while Vadraj Cement has a 6 MTPA capacity. Both Jaiprakash Associates and Vadraj Cement are navigating bankruptcy proceedings. ICICI Bank's insolvency plea against Jaiprakash Associates has been paused by the National Company Law Appellate Tribunal (NCLAT), which has recommended that ICICI Bank consider a settlement offer from the firm.

Ambuja Cement, with a cash reserve of INR 24,338 crore and zero debt, is the Group's prime acquisition in this sector. Adani has 63.15 per cent stake in Ambuja Cements Ltd. and 56.69 per cent stake in ACC Ltd (Of which 50 per cent is held through Ambuja Cements). The Group may pivot to ACC for its strategic fit in South India, where the Group seeks to strengthen its footprint.

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

India has the Potential to Host over 620 New Large GCCs by 2030: ANSR

The BFSI sector dominates GCCs in India, followed by Manufacturing and Retail/CPG. There is also a strong focus on digital technologies, with 85 per cent of GCCs engaged in digital commerce initiatives.

News and Trends

Union Budget 2025: Will FM Finally Offer Tax Relief to India's Crypto Ecosystem?

Among the demands and suggestions posed by the ecosystem players, the reduction of tax on virtual digital assets (VDA) and Tax Deducted at Source (TDS) remain a prime concern. The previous interim budget and union budget failed to provide any relief for domestic crypto investors.

News and Trends

Zetwerk Appoints Banks for Maiden Listing: Eyes $500 Million in Funds Through IPO

Zetwerk has opted to partner with Axis Capital Ltd., Goldman Sachs Group Inc., Jefferies Financial Group Inc., JM Financial Ltd., JPMorgan Chase & Co., and Kotak Mahindra Bank Ltd. as the book-running lead managers (BRLMs) for the IPO.

News and Trends

D2C Skincare Brand Foxtale Raised USD 30 Mn Series C Funding

Last year, the Mumbai-based brand raised USD 18 million (around INR 150 crore) in its Series B funding round, led by Panthera Growth Partners from Singapore.