Adani Group of Cement: Became the Second largest Cement Producer in india.
Billionaire Gautam
Adani's Group won the bid to acquire 63.19% stake in Swiss cement major
Holcim Ltd's India operations, & 54.53 % Ambuja Cements Ltd with it's
subsidiary ACC, in a $10.5 billion (approx 82000 Cr. Indian rupees), this deal makes
India’s biggest M&A transaction in the infrastructure and materials space.
The group had last
year set up two cement subsidiaries - Adani Cementation Ltd, which was planning
to set up two cement units at Dahej in Gujarat and Raigarh in Maharashtra; and
Adani Cement Ltd.,
With this deal,
the Adani Group became the second largest cement producer having capacity of
approx. 70 Million ton per annum (MTPA), in the country after the Aditya Birla
Group owned UltraTech Cement having capacity of 119.95 MTPA, The JSW Group
($7.0 Bn bid), Dalmia group, Aditya birla group & shree cement group were
also in the race to acquire the Ambuja-ACC combine.
"Our move
into the cement business is yet another validation of our belief in our
nation's growth story," said Gautam Adani, Chairman of the Adani Group.
"Not only is India expected to remain one of the world's largest
demand-driven economies for several decades, India also continues to be the
world's second largest cement market and yet has less than half of the global
average per capita cement consumption."
-Gautam adani
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Current Scenario & Scope in Cement Production:
·
India is the world's second-largest
producer of cement, trailing only China. China is anticipated to have produced
over 2.2 Bn metric tonnes of cement in 2019, accounting for more than 50% of
global output. India accounts for around 8% of global installed capacity, India
has a lot of potential for development in the infrastructure and construction
sector and the cement sector is expected to largely benefit from it. Some of
the recent initiatives, such as development of 98 smart cities, is expected to
provide a major boost to the sector
· In India, average consuption of
cement per person is approx 242 Kg , which is far lower than world's average
consuption of 525 kg/person. China is Consupming approx. 1700 kg/person cement
which is seven times from india, so filling this gap it is aspected to increse
the demand of the cement in upcoming 10-15 Years in india.
·
In India Cement production reached
329 million tonnes (MT) in FY20 and is projected to reach 381 MT by FY22.
However, the consumption stood at 327 MT in FY20 and will reach 379 MT by FY22.
The cement demand is estimated to touch 419.92 MT by FY 2027. As India has a
high quantity and quality of limestone deposits through-out the country, the
cement industry promises huge potential for growth.
·
As per ICRA, in FY22, the cement
production in India is expected to increase by ~12% YoY, driven by rural
housing demand and government’s strong focus on infrastructure development.
·
As per Crisil Ratings, the Indian
cement industry is likely to add ~80 million tonnes (MT) capacity by FY24, the
highest since the last 10 years, driven by increasing spending on housing and
infrastructure activities.
·
Higher allocation for
infrastructure – US$ 26.74 billion in roads and US$ 18.84 billion in railways
in union budget of FY23, is likely to boost demand for cement.
Top Cement Producers in India:
|
SL No. |
Company |
Capacity
(In Million Ton Per Anuum) |
|
1 |
Ultra tech cement |
119.95 |
|
2 |
Adani group (Former Holcim, Ambuja & ACC Group) |
70 |
|
3 |
Shree Cement Ltd |
43.4 |
|
4 |
Dalmia Bharat Ltd |
35.9 |
|
5 |
Birla Corporation Limited |
19.47 |
|
6 |
JSW Cement |
17 |
|
7 |
The Ramco Cements Limited |
16.45 |
|
8 |
India cement limited |
16 |
|
9 |
JK Lakshmi Cement |
13.3 |
|
10 |
JK Cement Limited |
10.5 |
|
11 |
JSW Cement Limited |
9.8 |
|
12 |
Orient Cement Ltd |
8 |
|
13 |
Heidelberg Cement India Ltd |
5.9 |
|
14 |
Star cement |
5.67 |
|
15 |
Prism Cement |
5.6 |
|
16 |
Jaypee Cement including JVs |
5.5 |
|
17 |
Manglam Cement |
4 |
Sources:
www.ibef.org
Mint news portal
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