The stage is set for a major clash in India’s cement industry as Gautam Adani’s aggressive expansion strategy pits him against fellow billionaire Kumar Mangalam Birla’s UltraTech Cement Ltd. Both are racing to expand capacity and acquire assets, aiming to dominate the supply of a key material crucial for India's ongoing infrastructure boom.
The rivalry between the Adanis and UltraTech, the sector leader, has already resulted in six deals within two years. On Sunday, UltraTech announced its seventh deal to acquire a coveted regional player, while several smaller rivals remain up for grabs.
UltraTech Cement's Board approved the purchase of a 32.72% equity stake in India Cements from its promoters and their associates for Rs 3,954 crore at Rs 390 per share. This stake sale will trigger a mandatory open offer at Rs 390/share, subject to regulatory approvals.
Adani Group's entry into the cement business in 2022 disrupted the existing hierarchy, becoming the second-largest cement maker overnight with the acquisition of Ambuja Cements Ltd. and ACC Ltd. However, 2023 saw the conglomerate dealing with the fallout from Hindenburg Research's critical report. Adani has since resumed its aggressive expansion, intensifying the competition with Birla’s established leader.
As Adani’s ambitious plans unfold, the competition with UltraTech is set to escalate, marking a significant chapter in India's cement industry.
India Cements bought Chennai Super Kings when the Indian Premier League started in 2008, but in 2015, it transferred the team to Chennai Super Kings Cricket Limited (CSKCL), a separate company. Former skipper M.S Dhoni is one of India Cements’ vice presidents.
