Indian Business Conglomerate Expands Cement Operations Through Strategic Mergers and Acquisitions

Indian Billionaire Gautam Adani Acquires Cement Businesses to Expand

In a move aimed at enhancing efficiency and competitiveness, Indian billionaire Gautam Adani’s conglomerate has approved the merger of two cement companies under its umbrella. The decision comes as India is experiencing an unprecedented construction boom, fueling high demand for cement.

Ambuja Cements, a unit controlled by Adani, announced that its board of directors had given the green light to merge with Sanghi Industries. As part of the agreement, shareholders of Sanghi will receive 12 shares of Ambuja in exchange for every 100 shares they hold. This development marks another significant step forward for Adani’s cement business expansion.

Earlier this year, Ambuja acquired a 100% stake in Penna Cement for $1.2 billion. CEO Ajay Kapur stated that the merger aims to enhance shareholder value by improving working capital management and providing internal funds to fuel the growth of operations.

The merged entity is expected to be completed within a year once approvals from stakeholders and regulators are obtained. The Adani Group’s rapid expansion into the cement industry has already made it India’s second-largest producer, with an annual production capacity of 89 million tonnes across 22 manufacturing plants and 21 grinding units nationwide.

It is worth noting that this aggressive expansion strategy has sparked intense competition with fellow billionaire Kumar Mangalam Birla, whose Ultratech Cement remains the industry leader with a massive production capacity exceeding 150 million tonnes.

Source: www.forbes.com