Adani’s Entry Spurs Big Moves in Cement Sector
The cement sector in India has witnessed a flurry of strategic acquisitions and mergers, largely sparked by the entry of the Adani Group in 2022. As major players like UltraTech Cement and Ambuja Cements continue to expand their footprints, the industry has seen a series of high-profile deals, signalling growing consolidation driven by increased government spending on infrastructure. Here’s a look at the major moves that have reshaped the landscape of India’s cement sector since Adani’s entry.
Adani Group-Holcim AG, May 2022
The most significant deal to date remains the Adani Group’s acquisition of Ambuja Cements and ACC from Swiss construction giant Holcim for a massive $10.5 billion. This deal marked Adani’s entry into the cement sector and has been the largest transaction in the industry to date, enabling the conglomerate to instantly become one of India’s largest cement players.
Dalmia Bharat-Jaiprakash Associates, December 2022
In December 2022, Dalmia Bharat strengthened its presence in central India by acquiring cement and other assets of Jaiprakash Associates for $687 million. This strategic move allowed Dalmia Bharat to increase its share in the growing central market, further intensifying competition in the sector.
Sagar Cements-Andhra Cements, February 2023
Sagar Cements made headlines in February 2023 with its $9.2 billion bid to acquire Jaypee Group’s Andhra Cements, as approved by a company tribunal. This acquisition was another significant development in the consolidation of India’s regional cement markets.
Ambuja Cements-Sanghi Industries, August 2023
In August 2023, Ambuja Cements, now part of the Adani Group, acquired an 83% stake in Sanghi Industries for $295 million. This deal was a notable move for Adani after the short-seller Hindenburg report in January 2023, marking the group’s commitment to expanding its footprint despite earlier setbacks.
UltraTech Cement-Kesoram Industries, November 2023
UltraTech Cement, India’s largest cement manufacturer, continued its aggressive expansion by acquiring Kesoram Industries’ cement assets for $645 million in November 2023. The deal strengthened UltraTech’s position in southern India, a key region for cement consumption and production.
Ambuja Cements-Penna Cement Industries, June 2024
In June 2024, Ambuja Cements acquired Penna Cement Industries for $1.25 billion, a deal that analysts believe cemented Ambuja’s place among the top three cement companies in southern India. The acquisition further consolidated Adani Group’s dominance in the region.
UltraTech Cement-India Cements, July 2024
UltraTech followed up its acquisition of Kesoram with a deal in July 2024, buying a controlling stake in India Cements for $472 million. After initially purchasing a 23% stake for $228 million, UltraTech completed the full acquisition, expanding its capacity and influence in the country’s southern markets.
Ambuja Cements-Orient Cement, October 2024
In October 2024, Ambuja Cements made another significant acquisition, agreeing to purchase nearly 47% of Orient Cement for $451 million. However, analysts have raised concerns about the regulatory approval for this deal, given its potential market impact.
UltraTech Cement-Star Cement, November 2024
The latest acquisition in the cement sector involves UltraTech Cement’s decision to purchase an 8.69% stake in Star Cement, valued at approximately ₹851 crore ($100 million). This deal further solidifies UltraTech’s position as the leader in India’s cement industry, adding another key asset to its extensive portfolio.
These deals highlight the aggressive strategies of both the Adani Group and UltraTech Cement, with both players focusing on expanding capacity and market share. As the cement sector continues to grow, bolstered by infrastructure initiatives, further consolidation seems inevitable, setting the stage for more high-value transactions in the near future.
