Adani Group has become the second biggest player in the country after Ultra Tech Cement, which has a capacity of 120 million tones per year.
Adani group sealed the acquisition in a deal worth $10.5 billion. Gautam Adani led AdaniGroup, has acquired a controlling stake in Switzerland, based Holcim AG’s cement businesses in India in a deal worth $ 1p.5 billion with this, The Adani group became the second biggest cement producer in the country.
Gautam Adani’s conglomerate acquired around 6319 % of Ambuja Cements Ltd and its subsidiary ACC in fierce bidding with other companies. The transaction is expected to close the second half of 2022, Holcim said, as per a Reuters report.
Adani VS JSW
The world’s largest cement maker Holcim last month announced it’s exit from the Indian market after struggling here for long.
Holcim was in talks with several business houses, including steel to energy conglomerate. JSW Group had planned to compete aggressively, with the Adani Group for Holcim AG’s cement business, and the stage was set for a bidding battle to become the country’s second biggest player in the country.
The steel to cement JSW group’s Chief Sajjan Jindal told the Financial Times last week it, would make a $7 billion bid to Holcim subsidiaries Ambuja Cements Limited and ACC limited.
Adani group sought to chase ready made assets that would immediately give them a big presence in the market.
India is the second largest cement producer in the world, and accounts for more than 7 per cent of the global installed capacity, according to government data.
Ambuja and ACC have a combined capacity to make atleast 66 million tonnes per annum (MTPA).The two companies together have 23 cement plants, 14 grinding stations; 80 ready mix concrete ants and over 50000 channel partners across India.
Adani Group in the last couple of years diversified beyond it’s core business of operating port’s, power plants and coal mines.
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