Adani eyes four mid-size cement makers: report

Adani Group is weighing acquiring at least four mid-size cement makers and has set aside a $3 billion war chest for the acquisition plan, The Economic Times reported, citing people familiar with the development.

On Adani’s radar are Penna Cement in Hyderabad, Saurashtra Cement in Gujarat, Jaypee Group’s Jaiprakash Cement, and Vadraj Cement owned by ABG shipyard, the report said.

The conglomerate is pursuing inorganic growth by acquiring mid-sized cement firms nationwide to boost production capacity and dethrone Aditya Birla Group’s UltraTech Ltd as India’s top cement maker by 2028, the report added.

The Gautam Adani-owned group may consider acquiring the mid-size cement companies through wholly owned cement firm Ambuja Cement.  At the end of April, Ambuja Cement had ₹24,308 crore in cash and equivalents on its books.

With the return of Narendra Modi as prime minister for a third term, the central government is expected to step up is focus on developing infrastructure, which is expected to boost the demand for cement and create more growth opportunities for cement firms.