ADANI GROUP'S FORAY into the cement sectorwould lead to another wave of consolidation, with companies vying with each other to acquire the nearly 25 million tonne per annum (MTPA) of stressed assets available. Further, expansion plans of cement makers could add another 150-160MTPA of production capacity over the next five years.
The Adani Group's acquisition of Holcim's India assets - Ambuja Cements and ACC for $10.5 billion may further intensify consolidation in the industry due to heightened competition as the big players would want to maintain or enhance their market share.
India is the second-largest cement producer in the world, accounting for about 8% of global cement production with an estimated production capacity of 550 MTPA.
UltraTech Cement, with a production capacity of 120 MTPA, is the market leader in the country, followed by Adani Group due its acquisition of Holcim's assets-Ambuja Cements (31.45 MTPA) and ACC (34.45 MTPA) - totalling 65.9 MTPA.Adani is also planning to set up a 5 MTPA cement-making facility in Maharashtra, which would take its total capacity to 70.9 MTPA. JSW Group has an installed capacity of 16 MTPA as of end of March 2022, and the company is targeting to increase it to 25 MTPAby FY24.
This story is from the May 19, 2022 edition of Financial Express Mumbai.
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This story is from the May 19, 2022 edition of Financial Express Mumbai.
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