The cement business has witnessed rapid consolidation over the past five years. However, the next wave of acquisitions would be slower due to the paucity of assets available and promoters' unwillingness to sell
Ambuja Cements Limited plant owned by Adani Group is seen from a nearby village in Darlaghat, Solan district in the state of Himachal Pradesh, India, February 15, 2023.
Image: Anushree Fadnavis / Reuters
A little over a year ago the Adani Group had no cement business. It is now the second largest player.
Not to be left behind larger rival Ultratech has set its sights on 200 million tons of capacity, up 45 percent from its present 137 million tons. While Chairman Kumaramangalam Birla didn’t specify a timeframe at the company’s annual general meeting, he said, “The scorching pace of expansion is unprecedented in the sector.” With the business consolidating and the top 4-5 players accounting for over two-thirds of India’s installed capacity of 510 million tons Birla knows he has his task cut out to maintain Ultratech’s lead.