Cement Industry’s Deal-Making Pace to Slow in 2025
India’s cement sector is poised to maintain its consolidation momentum into the New Year, after a year of intense deal-making in 2024. However, experts predict that while consolidation will continue, the pace of acquisitions may slow down, and deal sizes could be smaller.
The rapid consolidation in 2024 saw major cement producers, including UltraTech Cement and Adani Cement, orchestrating high-profile buyouts that reshaped the landscape of India’s cement industry. A total of four large deals, with a combined capacity of approximately 34 million tonnes, were made last year, representing significant shifts in market dynamics. Currently, India has an annual cement production capacity of 641 million tonnes. Leading the way, UltraTech Cement and Adani Cement spearheaded the acquisitions, with Adani Cement buying Penna Cement and Orient Cement, while UltraTech, owned by Aditya Birla Group, acquired India Cements and took a small promoter stake in Star Cement, based in Meghalaya. Adani Cement’s goal is to reach a capacity of 140 million tonnes by 2028, while UltraTech plans to surpass 200 million tonnes by 2026-27.
Experts note that despite the consolidation trend, the scale of deals could be lower in 2025. “It may not be as aggressive as what happened in 2024, but some form of consolidation will continue,” stated Parvez Qazi, an analyst at Nuvama Institutional Equities. In 2024, the focus of deal-making was primarily on southern markets, which account for nearly a third of India’s cement production. However, 2025 could see more regional expansion, with experts predicting that companies may target acquisitions outside the southern states. One potential target is Jaiprakash Associates, which has assets under the National Company Law Tribunal (NCLT) in the central region. Additionally, Heidelberg Cement, with operations in India, could be acquired by larger cement producers like Adani Group. Further consolidation could also be spurred by the government’s increased spending on infrastructure, which is expected to drive growth in cement volumes in 2025. The rebound in cement sales following a challenging 2024, which was marked by elections, extreme weather conditions, and a high base from the previous year, is also anticipated to support further industry expansion.
