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Kerala Kaumudi Online
Saturday, 20 July 2024 6.55 PM IST

Adani and Birla groups join forces to dominate Indian cement market

cement

KOCHI: Adani Group and Birla Group are joining hands to capture the Indian cement market. In three years, Gautam Adani-led Adani Group has acquired the second position in market share by acquiring various companies. Ultratech, owned by Kumar Mangalam Birla, currently has the largest market share.

Adani Group is rapidly gaining a foothold in the Indian cement market by acquiring several leading cement companies starting from Ambuja Cement. The Adani Group, which was not even in the picture till 2021, currently can produce 7.5 crore tonnes of cement per annum. The lion's share of this was achieved through acquisitions.

Adani group to conquer, Ultratech to retain

Both companies are strategizing to capture and maintain dominance. The Adani Group started its triumph in the cement market by acquiring Ambuja Cements and ACC for $1,050 crore (Rs 85,000 crore). Most recently, it has increased its presence in South India by acquiring Hyderabad-based Penna Cement Industries for Rs 10,420 crore. Penna has a production capacity of ten metric tons per annum. Along with this, the construction to increase the capacity by four metric tons is in progress.

Adani Group aims to increase the total production capacity to 140 MT within four years. Ultratech's move is to maintain market dominance through increased capital investment and better marketing measures. Currently, the company has a production capacity of 140 MT per annum. The company also says that it will increase its production capacity to 200 tons in four years.

Market share of five companies will spike

Leading rating agency ICRA has estimated that the market shares of the country's top five cement manufacturers - Ultratech, Adani Group, Shree Cement, Dalmia and Nuvoco - will rise to 55 per cent by March next year. They also state that the good growth seen in infrastructure development and the housing sector will be a big gain for Indian cement companies.

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TAGS: ADANI, BIRLA, CEMENT, MARKET, INDIA
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