Adani Cement is conducting due diligence on at least two South India-based cement companies as part of its expansion strategy. The group remains interested in acquiring Jaypee Cement, owned by debt-ridden Jaiprakash Associates, which is currently undergoing insolvency proceedings.
The company is also actively exploring acquisition opportunities in the northeast, focussing on mid-sized cement producers with capacities between 5-10Mta. Adani Cement has earmarked US$3bn for acquisitions in the cement and ports sectors, with plans to increase capacity to 140Mta by 2028.
Following the acquisition of Orient Cement, Adani Cement’s capacity is set to reach 97Mta, with targets of 100Mta by FY24-25 and 118Mta by FY25-26. Most expansion will be driven by acquisitions through Ambuja and ACC.
In 2023 Adani Cement acquired Penna Cement for over INR100bn (US$1.15bn), while Ambuja Cements signed a binding agreement to acquire a 46.8 per cent stake in Orient Cement for INR81bn. The group is also in the process of merging Penna Cement, Adani Cementation and Sanghi Cement, with completion expected in the next financial year.
