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- Gautam Adani Group Cement Sector Acquisition Plan | Penna Cement Vadraj Cement
Mumbai14 minutes ago
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Adani Group Chairperson Gautam Adani (file photo)
Adani Group can acquire many companies in the cement sector. The group is valuing several cement companies including Hyderabad-based Pena Cement, Gujarat-based Saurashtra Cement and Jaiprakash Associates’ cement business along with ABG Shipyard-owned Vadraj Cement. Economic Times has given this information in one of its reports.
According to the report, Adani Group is intensifying its efforts to capture almost one-fifth of the Indian cement market by FY28. Currently, after UltraTech, Adani is the second market leader company in this sector. No information about any such deal has been given officially by Adani Group or any other company.
Adani Group sets aside $3 billion fund for acquisition
According to the report, Adani Group has set aside a fund of $ 3 billion (about ₹ 25 thousand crore) to acquire these companies. The group wants to become the largest cement manufacturing company in the next 3-4 years by surpassing Aditya Birla Group’s UltraTech.
The Indian cement industry is poised for growth and cement demand is expected to grow at a compound annual growth rate (CAGR) of 7%-8% over the next five years.
Adani Group bought Ambuja Cement and ACC Cement in June 2022
Adani Group had bought Ambuja Cement and ACC Cement for $10.5 billion in June 2022. Recently, Gautam Adani’s family has invested ₹8,339 crore in Ambuja Cement, increasing their stake in the cement manufacturing company to 70.3%. Ambuja Cement had given information about this in its exchange filing.
After the acquisition, Adani Family had invested ₹5,000 crore in Ambuja Cements through warrants exercisable on 18 October 2022. At the same time, on March 28, 2024, Adani family had invested ₹ 6,661 crore, when their stake in the company increased by 3.6% to 66.7%.
