Adani Group to double cement production capacity

The Adani Group plans to double its cement production capacity over the next five years, according to Gautam Adani, group chairman. Speaking at an event in Mumbai to mark the closure of Adani Group’s acquisition of Holcim’s stakes in Ambuja Cements and ACC Ltd, Mr Adani said that he expects capacity to go from the current 70Mta to 140Mta over the course of the next five years.

“While India is the second largest producer of cement in the world, our per capita consumption is just 250kg compared to 1600kg of China. As several of the government programmes gather momentum, the long-term growth in cement demand is expected to be 1.2 to 1.5 times the GDP,” said Mr Adani “We anticipate growing at twice this number.”

Following its recent acquisitions, Adani Group is now the second-largest cement manufacturer in India with a market cap of US$260bn. Mr Adani believes the group will learn from several acquisitions made over the years and expects to see signifiant margin expansion to “become the most profitable cement manufacturer in the country,” reports The Times of India.