The Adani Group Plans To Spend 3 Billion USD In Its Cement Manufacturing Business

1. THE ADANI GROUP PLANS TO SPEND 3 BILLION USD IN ITS CEMENT MANUFACTURING BUSINESS

2. Adani Cement is a top name in the cement manufacturing business. The company’s operating units are Ambuja Cements and ACC Ltd. These companies are responsible for producing a huge capacity of the manufacturing material. This is being done to meet our country’s manufacturing needs. Currently, the Adani Group is looking for opportunities to make major acquisitions in this particular sector. Some of the major businesses currently under its radar include Hyderabad-based Penna Cement and Jaiprakash Associates’ cement business. The group is also planning to acquire Gujarat’s Saurashtra Cement and Vadraj Cement, owned by ABG Shipyard. The firm has already planned to spend 3 billion USD on all these plans. This is part of the business’s aggressive growth and expansion strategy.

3. The Adani Group is already a major part of the materials industry. It already has multiple Adani coal mines under its name. The Group plans to extend its hold over the cement industry. The Adani Group is now the second-largest cement producer in India. Its position is just after UltraTech Cement. However, the business group is going to surpass its rival within the upcoming 3 to 4 years.

4. ADANI GROUP’S CEMENT BUSINESS: Adani Cement is the material manufacturing wing of the Adani Group. The company includes Ambuja Cements and ACC Ltd. The two names together have an annual production capacity of 77.4 million tons, which is continuously increasing. The total capacity comes from 18 grinding units and 18 integrated plants located in different corners of the country. The Adani Group has also joined hands with Sanghi Industries Limited. This is done to boost its manufacturing capacity further.

5. The Adani Group is currently aiming to capture 20% of the Indian cement market by the year 2028. It also has plans to execute a capital expenditure program. It aims to do so by maintaining a debt-free status. The company is also determined to achieve a production capacity of 140 million tons per annum by 2028. This represents an annual growth rate of around 16%. THE PLANS FOR ACQUISITION: Penna Cement is valued at INR 9,000 crores. The company plans to expand its capacity from 10 MTA to 15.5 MTPA. Saurashtra Cement is another company that the Adani Group plans to acquire. Its market capitalisation is INR 1,487 crore. The company is also planning to acquire the assets of Jaiprakash Associates, which have a market capitalisation of INR 5,666 crores.

6. The Adani Group plans to provide an enterprise value of 85 to 120 USD per ton for all these mid-sized companies. The firm’s recent acquisition of Sanghi Industries had a price of 100 USD EV per ton. With all these expansions, the Adani Group will find it really easy to become the biggest cement manufacturer in the country. It will also be able to build an excellent reputation for itself on a global scale. WHY THIS PARTICULAR INDUSTRY? Now you must be wondering why the Adani Group is so interested in expanding its cement business. Well, the major reason behind this expansion is the government-driven infrastructure boom. The government is currently planning on bringing about massive infrastructural developments in the country and this would require the supply of huge quantities of building materials. So, in order to ensure that the increased demand is met without having to depend on export, the Adani Group is planning on making some major acquisitions in the industry. By doing so, it aims to reduce costs, make good use of the energy generated from the Adani coal mines, and also enhance the various supply chain efficiencies.