News Continuous Bureau | Mumbai
Adani Group: Gautam Adani, the second richest person in Asia and India, is now going to enter the cement sector. It is reported that the Adani Group has planned to expand in this sector and has prepared a war chest of three billion dollars (about Rs. 2,50,54,86,00,000) for this.
According to media reports, Adani Group is eyeing several cement companies. This includes Gujarat company Saurashtra Cement, Jaiprakash Associates’ cement business and ABG Shipyard Company Vadaraj Cement. Adani Group aims to overtake Aditya Birla Group’s UltraTech to become the country’s largest cement company in the next three to four years. The group currently has three cement companies. These include Ambuja, ACC and Sanghi Cement.
Adani Group: Ambuja Cement bought Penna Cement Industries Limited
It is reported that Adani Group Chairman Gautam Adani’s cement company Ambuja Cement has acquired Penna Cement Industries Limited. Ambuja Cement Rs. 10.422 crore has acquired 100 percent stake in Penna Cement. With this deal, Ambuja Cement’s annual cement production capacity will increase by 14 million tonnes. Importantly, recently, Adani also acquired Sanghi Industries Limited to further expand its manufacturing capacity.
Adani Group: Cement production capacity to increase
Ambuja Cement disclosed the deal in its regulatory filing to the stock exchange. In its board meeting held on June 13, 2024, the board of directors of the company has agreed to buy 100 per cent stake in Penna Cement Industries Limited (PCIL), the company said in its filing. The acquisition of Hyderabad-based Penna Cement will increase Adani Group’s cement production capacity by 14 million tonnes to a total cement production capacity of 89 million tonnes per annum.
This news Also Read: Non-bailable warrant issued against former CM and BJP stalwart; Action taken in POCSO case
Importantly, Penna Cement has an annual production capacity of 14 million tonnes in Andhra Pradesh, Telangana and Rajasthan (under construction). Along with this, the surplus clinker at its Jodhpur plant will create an additional cement grinding capacity of 3 million tonnes per annum. The acquisition will also strengthen Adani Group’s maritime transportation logistics. Under this deal, five bulk cement terminals will be opened at Kolkata, Gopalpur, Karaikal, Kochi and Colombo to serve peninsular India. According to the statement, the acquisition will increase the Adani Group’s all-India share of the cement market by two per cent and eight per cent in South India.
Adani Group: This is the goal of the Adani Group
Under the leadership of Gautam Adani, the Adani Group aims to capture a fifth or 20 percent share of the Indian cement market by fiscal 2028. Adani Cement plans to implement a capital expenditure programme, which will maintain its debt-free status, and is targeting a production capacity of 140 MTPA by FY2028, representing an annual growth rate of 16 per cent.
(Disclaimer: The information presented here is also available on other media platforms and we do not make any claim regarding its veracity. Be sure to consult a financial advisor before making any investment.)
