BIG BUSINESS NEWS: Adani Group's entry into cement sector after taking over Ambuja Cement
New Delhi: There is a lot of big news coming out about the business sector. After gas and aviation, Adani Group has now entered the cement sector. Earlier, Adani Group announced through Offshore Special Purpose Vehicle that it would buy two of India’s leading cement companies. The Adani Group has bought stakes in Ambuja Cements Ltd., a years old and leading company in the cement sector, and Holcim Ltd., a Swiss based company in ACC.
Importantly, Adani Group Holcim, through its subsidiaries, has a 63.19 per cent stake in Ambuja Cements and a 54.53 per cent stake in ACC. The business sector deal is worth about 10 10.5 billion. It is also believed that this is the largest acquisition ever made by the Adani Group. With this deal, Adani Group, Gujarat’s leading industrial unit, entered the cement sector after the gas and aviation business.
The Adani Group has announced in a statement that it has acquired the entire stake in Switzerland-based Holcim Limited in Ambuja Cements Limited and ACC Limited through Offshore Special Purpose Vehicle. Both these companies have a very big name in India. A number of agreements have also been made under this deal. The offer share price of Ambuja Cement is Rs. 385 and ACC is priced at Rs. 2,300, Holcim said in a statement. This is considered to be India’s largest ever acquisition in the field of infrastructure and materials. The Swiss company entered India 17 years ago.
Ambuja Cements and ACC currently have a combined installed production capacity of 70 MTPA. Both the companies are one of the strongest brands in India with strong construction and supply chain. They have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and over 50,000 channel partners in India.
Why is Adani interested in cement sector?
The Adani Group is currently making good money through its various businesses. Not only India, Gautam Adani is one of the top businessmen in the world. The question then is, why did Adani finally become interested in the cement business? You will also find the answer here. Currently, the construction business is growing very fast all over the country including Gujarat. At the same time, the price of cement has been steadily rising. According to a survey, 242 kg of cement is used per capita. Globally, the figure is more than double that. Compared to the global average of 525 kg per capita, the cement sector in India has great potential for growth. And given the rapid growth of urban and rural areas, there are prospects for good earnings in the cement sector in the near future.
