Adani's Solid Foundation

Group firm Ambuja Cements' buyout of Penna Cement will strengthen its position in the South and give it an opportunity to leverage the sea advantage

- KRISHNA GOPALAN

FOR THE ADANI Group, cement is a core business today. In just under three years, the conglomerate has grown its capacity from almost nothing to a total of 75 million tonnes per annum (mtpa), positioning itself as the second-largest player in the industry, trailing only UltraTech Cement's 140 mtpa capacity.

It is worth noting that a significant portion of the growth has been inorganic, starting with the bigticket $10.5-billion deal to acquire Ambuja Cements and ACC. The latest one is the buyout of Hyderabad-based Penna Cement Industries for ₹10,420 crore. Currently, Penna Cement has a total capacity of 10 mtpa and another 4 mtpa is under construction. Once the deal is closed, the total capacity of the Adani Group's cement business will expand to 85 mtpa. The group aims to achieve a production capacity of 140 mtpa by 2028, while market leader UltraTech Cement has set its sights on reaching a capacity of 200 mtpa.