Adani Group sets US$3bn aside for multiple cement acquisitions

The Adani Group is planning several potential acquisitions within the cement sector. These include Hyderabad-based Penna Cement, Jaiprakash Associates’ cement business, Gujarat’s Saurashtra Cement, and Vadraj Cement (owned by ABG Shipyard).

The group has allocated US$3bn for these acquisitions, demonstrating its commitment to a bold inorganic growth strategy as it attempts to become the largest cement producer in India.

Adani Cement is currently the second-largest producer in India, after UltraTech Cement, which is owned by the Aditya Birla Group. The Business Standard reports that the Adani Group aims to overtake Aditya Birla within the next three to four years.

Adani Cement is the parent company of Ambuja Cements and its subsidiary ACC Ltd, with a total production capacity of 77.4Mta. This capacity comprises 18 integrated plants and an additional 18 grinding units across India.

Adani recently acquired Sanghi Industries Ltd to strengthen its production capabilities.

The Adani Group, led by Founder and Chairman Gautam Adani, aims to claim a 20 per cent share of the Indian cement market by the FY27-28. Adani Cement plans to enact an accelerated capital expenditure programme, maintaining a debt-free status while aiming for a production capacity of 140Mta by FY27-28, representing an annual growth rate of 16 per cent.