Gautam Adani's BIG plan to compete with Kumar Mangalam Birla, this company aims 118 million tonnes…, challenge for…
Adani- Birla
Adani Group-owned Ambuja Cements is aiming to achieve an annual production capacity of 118 million tonnes by the end of this fiscal year.
The company has already aggressively expanded by acquiring several smaller players over the past two years, and has already surpassed the 100 million tonnes per annum (MTPA) milestone. After which Ambuja Cements became the ninth-largest cement manufacturer globally, according to its latest earnings statement.
As part of its future plans, the Adani Group is competing with UltraTech Cements, owned by the Aditya Birla Group. Ambuja Cements plans to increase its capacity to 140 MTPA by 2028 and become a leading player in the global cement industry.
'This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 MTPA capacity. Additionally, we have ongoing organic expansions at various stages across the country, which will help us achieve 118 MTPA capacity by end of FY 2026, a significant step, bringing us closer to our goal of 140 MTPA by 2028,' said its CEO Vinod Bahety.
Adani Cement this month completed the acquisition of the majority stake in the CK Birla group firm Orient Cement.
As per its expansion strategy, the group is expanding its capacity in the cement industry through inorganic route by acquiring small rivals and through brownfield expansion by adding capacity to the existing units.
The Adani group aspires to have 140 MTPA capacity by FY28 pan-India, which will help reduce overall lead distances and logistics costs for the cement business and improve market share in its core markets.
In June 2024, Adani had announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, which added 14 MTPA capacity to the country's second-largest manufacturer.
In December last year, it completed the acquisition of Saurashtra-based Sanghi Industries Ltd at an enterprise value of Rs 5,185 crore.
Adani group entered into the cement sector in September 2022, after acquiring controlling stakes in Ambuja Cements from Swiss firm Holcim for cash proceeds of USD 6.4 billion (about Rs 51,000 crore). Ambuja Cements owns a 51 per cent stake in ACC Ltd.
Later it also launched a Rs 31,000-crore open offer for the acquisition of 26 per cent additional stakes from public shareholders.
The Indian cement market is led by Aditya Birla Group firm UltraTech Cement Ltd, which has a consolidated capacity of 183.06 MTPA.
(With inputs from PTI)
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