+
Consolidation Wave Sweeps Indian Cement Industry
Cement

Consolidation Wave Sweeps Indian Cement Industry

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.

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.

Next Story
Infrastructure Energy

Arunachal’s Hydro Corp Earns Carbon Credits Milestone

The Hydro Power Development Corporation of Arunachal Pradesh (HPDCAPL) has received verified carbon credits for its 3 MW Zemithang hydro project in Tawang, making it the Northeast’s first in the voluntary carbon market.The Universal Carbon Registry issued credits for FY 2022–23, with the project having generated 16,326 tonne so far and targeting 97,783 tonne by 2028.The plant uses 1.5 MW pelton turbines and remains HPDCAPL’s only commissioned project. The initiative supports India’s net-zero goal by 2070.CMD Toko Onuj is steering HPDCAPL towards becoming a green energy and carbon tradi..

Next Story
Infrastructure Energy

Chandigarh Power Infra to Be Upgraded

Chandigarh Power Distribution Limited (CPDL) has announced plans to invest Rs 9.56 billion over five years to modernise the city’s ageing electricity network.Over 50 per cent of existing infrastructure is outdated, leading to frequent breakdowns. CPDL proposes tariff revisions to fund upgrades including new transformers, underground cabling, smart meters, and customer care centres.The Capital Expenditure (CAPEX) plan has been submitted to the Joint Electricity Regulatory Commission for approval.To improve communication, CPDL has also launched a KYC update drive for consumers. ..

Next Story
Infrastructure Energy

Jayakwadi Hydro Plant Shut Since Dec 2023 for Repairs

The 12 MW hydroelectric plant at Jayakwadi dam, Chhatrapati Sambhajinagar, has been offline since December 2023 due to turbine vibration issues.Officials say continued use could damage machinery. Three firms have submitted maintenance bids, which are under review by MAHAGENCO.The plant’s fast response—ready in 5 minutes—and low cost (50.56 paisa per unit) make it valuable for peak demand. Water used in the process is also pumped back into the reservoir...

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?