In the Indian cement sector, Gautam Adani’s expansion push has initiated a competition with UltraTech Cement Ltd., a company owned by fellow billionaire Kumar Mangalam Birla, to acquire assets and increase capacity. Battle lines are being established.
The deep-pocketed tycoons are expected to intensify the conflict of titans as they endeavor to control the supply of a building material that is essential for the maintenance of India’s infrastructure boom.
UltraTech, the sector leader, and Adani’s ambitious interloper has already executed six transactions in less than two years. Birla’s cement manufacturer announced the seventh transaction on Sunday in order to acquire a highly sought-after regional player. At least half a dozen lesser competitors remain unclaimed.
The local hierarchical order was upended by Adani Group’s big bang entry in 2022, as it became the second-largest cement manufacturer overnight by acquiring ACC Ltd. and Ambuja Cements Ltd.
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By 2028, Adani intends to increase its annual production capacity to 140 million tonnes, having already acquired four companies in the sector since its entry.
The Adani Group, which oversees India’s largest private sector port operator, is striving to substantially reduce costs, despite the fact that it is unable to match the cost efficiency of Chinese cement manufacturers.
Birla’s cement giant will persist in its efforts to acquire assets and expand its operations in order to achieve an annual capacity of 200 million tonnes by 2027, according to individuals who are knowledgeable about Birla’s strategy.
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