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Indian Billionaire Gautam Adani Acquires Cement Businesses To Expand
In a strategic move to expand its cement operations and capitalize on India’s booming construction industry, Indian billionaire Gautam Adani has announced the acquisition of two cement businesses. Ambuja Cements, a unit controlled by Adani, has approved a merger with Sanghi Industries, streamlining its operations and paving the way for further growth.
As part of the deal, shareholders of Sanghi will receive 12 shares of Ambuja for every 100 shares they hold. The merged entity will have an enhanced working capital management system and internal funds to support its business operations. The merger is expected to be completed within a year after obtaining necessary approvals from stakeholders and regulators.
This acquisition marks the latest development in Adani’s rapid expansion in the cement industry. In 2022, he acquired Holcim’s Indian assets, catapulting his group to become India’s second-largest cement producer. This new move further solidifies Ambuja Cements’ position in the market, with an annual production capacity of 89 million tonnes from 22 manufacturing plants and 21 grinding units across the country.
It is worth noting that Adani’s cement business has faced intense competition from fellow billionaire Kumar Mangalam Birla’s Ultratech Cement, which holds a significant lead as the industry leader. However, Adani’s strategic expansion plans seem to be paying off, with his net worth currently standing at $62.9 billion.
The recent developments come amidst controversy, as U.S. prosecutors accused Adani and other executives of orchestrating a $250 million bribery scheme to secure lucrative energy contracts from the Indian government. The allegations led to a significant drop in Adani’s net worth, wiping out almost $16 billion in just one week.
Despite these challenges, Adani remains committed to expanding his conglomerate’s interests across various sectors, including ports, airports, power generation and transmission, and green energy.
Source: www.forbes.com
