Concrete

ACC-Ambuja: Know about the cement industry?s most anticipated bidding

Cement leaders have been aggressively running to grab the Holcim assets

Published

4 years ago

April 29, 2022

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As tension mounts and speculations continue being made, the Indian cement industry has been closely watching the progress of Holcim Group?s exit from the country. The Swiss giant set off a whirlwind by putting its two listed cement arms ? ACC and Ambuja ? out in the market to evaluate options for their stake sale.

Holcim holds a 63.19 per cent share in Ambuja and 4.48 per cent in ACC, which is an Ambuja subsidiary. Ambuja additionally holds its own stake of 50.05 per cent in ACC. Holcim Group?s global cement capacity as of the current financial year is 293 mtpa with around 24 per cent of its total capacities housed in India. Ambuja?s current reported grinding capacity is 31.4 mtpa with plans to expand capacity to 39.9 mtpa by 2024, while ACC?s has been calculated at 34.9 mtpa to be increased to 39.7 mtpa by the first half of the next year.

These numbers mean that any player who manages to take over both ACC and Ambuja will be adding a combined pan-India capacity of 66 mtpa, promptly shooting any global player to a second position.

The contenders

The world?s largest cement maker reportedly has been believed to have held early-stage negotiations with JSW Cement and Adani Group to gauge their interests in this acquisition, with news reports indicating UltraTech as another formidable contender in this race. Apart from these, a few regional players such as Shree Cement have been approached as well.

JSW Cement has a grinding capacity of approximately 15 mtpa. It primarily depends on imported clinkers since its present clinker capacity is 3.2 mtpa only. Shiva Cement, a JSW subsidiary, will increase its clinker capacity by 1.36 mtpa and cement capacity by 1 mtpa.

UltraTech has a consolidated capacity of 119.95 mtpa while Adani does not have a presence in the cement market as of date, but has been planning its foray into the cement industry under its subsidiary Adani Cement Industries formed in July 2021.

Shree Cement?s grinding capacity is 46.4 mtpa and has been consistent in its capacity additions, however, it has done only one acquisition in the domestic market and may reportedly face regulatory hurdles if it shows its interest in this deal.

The investment

Ambuja?s market capitalisation is Rs 764.77 billion and that of ACC?s is Rs 433.89 billion, together making the companies? total market cap at Rs 1.20 trillion. If signed, this deal stands to reportedly be one of the largest in the country.

The bids for the two assets are expected to be upwards of $10 billion. As Motilal Oswal?s recent cement sector update report mentions, ?Holcim will prefer a cash deal and not a share swap if it has plans to exit the Indian operations. This acquisition will require a huge investment by the acquirer and will make the complete exit a tall task.? The report adds that the acquirer will have to give an open offer in both the companies. The huge investments may lead to leveraging of the acquirer?s balance sheet, which generally is not favoured for a cyclical business.

Recent developments point out that JSW Cement has a couple of US private equity funds keen on this opportunity backing its funding, while Adani has reportedly tied up with multiple foreign banks such as Deutsche Bank and Barclays and domestic banks such as ICICI Bank and Axis Bank for funding the deal.

Benefits to the sector

This deal, if it goes through, should be positive for the sector in the near-to-medium term as the acquirer might not chase growth CAPEX immediately, the Motilal Oswal report observes. ?Acquisition by the Adani group, if it happens, may also alleviate concerns of an entry of a new aggressive player in the sector as the group?s immediate focus will be on streamlining the operations in the near term. In the long run, however, sector dynamics would depend on the growth plans and aggressiveness of the acquirer.?

ACC has undertaken expansion plans in the Central markets, whereas Ambuja has recently announced its expansion plans in the East. Holcim will obtain 1 per cent of the turnover of ACC and Ambuja as technology and know-how fees.

Everyone involved in the divestment, however, continues to be tightlipped. With a portfolio as impressive as Holcim?s, the industry awaits the results of perhaps the most anticipated and aggressive bidding the Indian cement industry has seen in recent times.

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Concrete

NCB Signs MoU With Cement Manufacturer To Boost Construction Skills

Partnership to deliver nationwide training and certification

Published

1 week ago

March 31, 2026

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The National Council for Cement and Building Materials (NCB) has signed a memorandum of understanding with a leading cement manufacturer to strengthen skill development and capacity building in the construction sector. The agreement was formalised at NCB premises in Ballabgarh and was signed by the Director General of NCB, Dr L. P. Singh, and the head of technical services at UltraTech Cement Limited, Er Rahul Goel. The collaboration seeks to bring institutional resources and industry expertise into a structured national training effort.

The partnership will deliver structured training and certification programmes across the country aimed at enhancing the capabilities of civil engineers, ready?mix concrete (RMC) professionals, contractors, construction workers and masons. Programme curricula will cover material quality testing, concrete mix proportioning, durability assessment and sustainable construction practices to support improved construction outcomes. Emphasis is to be placed on standardised assessment and certification to raise practice levels across diverse construction roles.

Practical learning elements will include workshops, site demonstrations, technical seminars and exposure visits to plants and RMC facilities to strengthen applied skills and on?site decision making. The Director General indicated confidence that a large number of professionals and workers would be trained over the next three to five years under the initiative. The partnership is designed to complement flagship government schemes such as the Skill India Mission and to align training outputs with national infrastructure priorities.

By combining the council’s technical mandate with industry experience, the initiative aims to develop a more skilled and quality?conscious workforce capable of meeting rising demand in infrastructure and housing. NCB will continue to coordinate programme delivery and quality assurance while industry partners provide practical exposure and technical inputs. The collaboration is expected to support long?term capacity building and more sustainable construction practices nationwide.

Concrete

JSW Cement Commissions Nagaur Plant, Enters North India

New Rajasthan unit boosts capacity to 24.1 MTPA and expands reach

Published

1 week ago

March 30, 2026

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JSW Cement has strengthened its national presence by commencing production at its greenfield integrated cement plant in Nagaur, Rajasthan, marking its entry into the north Indian market.

With this commissioning, the company’s installed grinding capacity has increased to 24.1 MTPA, while total clinker capacity, including its joint venture operations, stands at 9.74 MTPA.

The Nagaur facility comprises a 3.30 MTPA clinkerisation unit and a 2.50 MTPA cement grinding unit, with an additional 1.00 MTPA grinding capacity currently under development. Strategically located, the plant is positioned to serve high-growth markets across Rajasthan, Haryana, Punjab and the NCR.

The project has been funded through a mix of equity and long-term debt, with Rs 800 crore allocated from IPO proceeds towards part-financing the unit.

Parth Jindal, Managing Director, JSW Cement, stated that the commissioning marks a key milestone in the company’s ambition to become a pan-India player. He added that the project was completed within 21 months and positions the company to achieve its targeted capacity of 41.85 MTPA by FY29.

Nilesh Narwekar, CEO, JSW Cement, highlighted that the expansion aligns with the company’s strategy to tap into rapidly growing northern markets driven by infrastructure development. He noted that the company remains focused on delivering high-quality, eco-friendly cement solutions while progressing towards its long-term capacity goal of 60 MTPA.

The Nagaur plant has been designed with sustainability features, including co-processing of alternative fuels and a 7 km overland belt conveyor for limestone transport to reduce road emissions. The facility will also incorporate a 16 MW Waste Heat Recovery System to improve energy efficiency and lower its carbon footprint.

JSW Cement, part of the JSW Group, operates across the building materials value chain and currently has eight plants across India, along with a clinker unit in the UAE through its joint venture.