Consolidation Wave Sweeps Indian Cement Industry

02 Jul 2024 CW Team

This development comes closely on the heels of another major acquisition in the sector. Just two weeks prior, Ambuja Cements, owned by the Adani Group, finalized a monumental deal to acquire 100% of Hyderabad-based Penna Cement Industries for a staggering Rs 104.22 billion. These moves highlight a growing trend among India's largest cement companies to consolidate resources, expand production capacities, and enhance their geographical footprint.

The cement industry, a cornerstone of India's infrastructure growth, has witnessed a flurry of mergers and acquisitions in recent years. An analysis reveals that since early 2016, including the latest UltraTech Cement-India Cements deal, there have been a total of 21 significant transactions in the sector, collectively valued at approximately Rs 1.59 lakh crore. Post-pandemic, these deals, amounting to Rs 1.12 lakh crore, have surged, reflecting industry players' proactive measures to capitalize on recovery and expansion opportunities.

Industry experts suggest that such strategic acquisitions not only bolster the acquirers' market dominance but also pave the way for synergies in operations and distribution channels. With the cement demand projected to rise alongside infrastructure developments across India, these consolidations are expected to drive efficiencies and innovation in the sector.

The cement sector's consolidation trend underscores a broader strategy among major players to navigate competitive pressures, optimize economies of scale, and ensure sustainable growth amidst evolving market dynamics. As stakeholders monitor the outcomes of these acquisitions, the industry anticipates further reshaping of its competitive landscape in the months ahead.

In a significant move towards consolidation, UltraTech Cement has secured a substantial 23% non-controlling stake in Chennai-based India Cements for Rs 18.89 billion. This acquisition, announced by Kumar Mangalam Birla-promoted UltraTech Cement, underscores the cement giant's strategic intent to strengthen its market position amidst intensifying competition. This development comes closely on the heels of another major acquisition in the sector. Just two weeks prior, Ambuja Cements, owned by the Adani Group, finalized a monumental deal to acquire 100% of Hyderabad-based Penna Cement Industries for a staggering Rs 104.22 billion. These moves highlight a growing trend among India's largest cement companies to consolidate resources, expand production capacities, and enhance their geographical footprint. The cement industry, a cornerstone of India's infrastructure growth, has witnessed a flurry of mergers and acquisitions in recent years. An analysis reveals that since early 2016, including the latest UltraTech Cement-India Cements deal, there have been a total of 21 significant transactions in the sector, collectively valued at approximately Rs 1.59 lakh crore. Post-pandemic, these deals, amounting to Rs 1.12 lakh crore, have surged, reflecting industry players' proactive measures to capitalize on recovery and expansion opportunities. Industry experts suggest that such strategic acquisitions not only bolster the acquirers' market dominance but also pave the way for synergies in operations and distribution channels. With the cement demand projected to rise alongside infrastructure developments across India, these consolidations are expected to drive efficiencies and innovation in the sector. The cement sector's consolidation trend underscores a broader strategy among major players to navigate competitive pressures, optimize economies of scale, and ensure sustainable growth amidst evolving market dynamics. As stakeholders monitor the outcomes of these acquisitions, the industry anticipates further reshaping of its competitive landscape in the months ahead.

Infrastructure Transport

13 Oct 2025

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Infrastructure Urban

13 Oct 2025

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Technology

13 Oct 2025

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..