Adani Becomes India’s Second-largest Cement Producer

Asia’s richest person, Adani, became the second-largest cement producer in the country after acquiring 63.19% of Ambuja Cements Ltd. and its subsidiary ACC in Fierce bidding with local companies. 

Adani acquired a controlling stake in Holcim AG’s cement business for a $10.5 billion deal, said Adani group on Sunday. With this, the Adani group became the second-largest cement producer after the Aditya Birla Group-owned UltraTech cement.

Holcim, through its subsidiaries, holds a 63.19% stake in Ambuja Cements and 54.53% in ACC (of which Ambuja Cements hold 50.05%). The latest move by the Holcim is to reduce its reliance on cement production and industrial pieces, which produce high-level of carbon emissions. In recent years, the Switzerland-based company has fastened its efforts to get out of carbon-intensive cement making. 

Holcim expects to receive $6.4 billion or 6.4 Swiss francs of cash proceeds from the sale. In this regard, the Adani group said that it would have acquired more shares through an open offer. The deal is likely to close in the second half of 2022.   

Ambuja and ACC, combined, have the capacity to produce at least 70 million tonnes of cement annually. UltraTech, on the other hand, can produce 120 million tonnes. 

In the last couple of years, the Adani Group has diversified its core business of operating ports, plant power, and coal mines into airports, data centres, and clean energy. 

Adani Group has set up two cement subsidiaries ━ Adani Cementation Ltd. which plans to build an integrated facility in western Gujrat and Maharashtra states, and Adani Cement Ltd., according to officials. 

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