Concrete

Who’s gonna bag it

Published

4 years ago

May 11, 2022

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As Holcim sells off its cement holdings in India for Ambuja Cement and ACC, speculations are rife about who will bag these two giants and gain an upper hand in the industry.

One of the world’s biggest cement manufacturers, Switzerland-based Holcim is exiting its India operations and is selling its stakes of Ambuja Cement and ACC. In 2004, the Holcim
Group entered India through their buyout; now, the assets are on the block, after almost two
decades. These twin brands are second in market leadership with a combined capacity of 66 million tonne, second to UltraTech Cement of the Birla Group with a capacity of 120 million tonne.
Holcim Ltd. holds a 63.19 per cent stake in Ambuja Cement and a 4.48 per cent stake in ACC
Cement, where Ambuja Cement holds 50.05 per cent stake in ACC. With India’s infrastructure story gaining momentum, it is a hugely strategic asset for any buyer.
The frontrunners are big business groups such as AV Birla, JSW Group, Adani Group and more
recently, Radhakishan Damani, the billionaire investor and promoter of Avenue Supermarts. The ticket size for this deal with the combined market capitalisation of ACC and Ambuja will be in excess of Rs 1.2 lakh crore and a potential deal being upwards of $10 billion (over Rs 76,000 crore).

The acquisition game
Setting up a new plant post completion of all its formalities of land, norms etc., takes upto three years.

Its location in proximity to the mines as well as to the market is of paramount importance. Therefore, expanding inorganically can be highly value-accretive, especially for a new player like Adani. It will also lead them to owning the place of the second largest cement manufacturer in the country.

“To shed a positive light on the situation of the Holcim Group India exit, it presents an opportunity for the next owner of the brands to take Ambuja Cement and ACC to newer heights in the market.

Their growth as compared to the industry growth has been slower, while other players like Dalmia Cement, Shree Cement and many others have capitalised on the opportunities that have presented in the market,” says Anil Singhvi, Chairman, Ican Investments Advisors.

“If an Indian player gains the majority stake in this transfer of ownership, it will be an advantage to the brands as the new owners will have a fair understanding of the Indian market and how the brands function. Hopefully, Ambuja Cement and ACC as brands will bring a healthy competition in
the market for the number one spot by perhaps acquiring smaller players in the market and increasing its operations across the country. The future does hold a tremendous growth potential for these cement brands,” he adds.

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.

The report further states, “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.”
“If Ambuja Cement and ACC are owned by an Indian player, they are going to have a better future.
Holcim Group operates with many restrictions under the Indian law, however, that will differ when an Indian player comes into the picture; their operations can be more flexible and aggressive, which would ultimately be beneficial for the twin brands,” says Dhimant Mehta, President, Cement Stockists and Dealers Association, and President, DM Group.
“If Adani Group or JSW take over these brands, the way things work and the way business is conducted would change. The Adani Group has inhouse ports and a great Indian distribution system. This will make them handle the cement brands more efficiently, especially in the coastal areas. Holcim India played on its marketing strengths, but, this Indian player has other resources as well that will put them in a strong position to navigate the business as the second
biggest cement manufacturer in India,” he adds.
Ambuja Cement and ACC are pan-India brands with a widespread distribution network and established market presence. Taking on these two companies will put the bidder instantly in a favourable position in the market, but the acquisition itself is a landmine of challenges as competition heats up and the bidding becomes more aggressive.
While the Adani Group is yet to foray into the cement sector, the company is reported to be amongst the leading bidders for Holcim’s local operations.
If Adani is successful in the takeover, the move will take the company from a zero position to a Number 2 position instantly. The two other contenders in the stakeout are JSW Cement, which has a grinding capacity of approximately 15 mtpa, and Shree Cement with a grinding capacity of 46.4 mtpa. If talks succeed for either of the companies, JSW Cement will be propelled from number 8 to number 2 position, which is a considerable jump for the brand, while Shree
Cement will move from number 4 position to the second lead.
That leaves us with the most crucial player in the market – UltraTech. With a consolidated capacity of 119.95 mtpa, Ultratech leads in cement production.
It is highly unlikely that Ultratech would be allowed to bag this prized number two given that Competition Commission of India would be watching over this deal. With complaints of cartelisation already making rounds of courts, this would be definitely a no-no. Not only will the takeover of Ambuja Cement and ACC seal its number 1 position, it will widen the gap between Ultratech and other companies to such an extent, so as to eliminate competition for the cement giant. Further it will also then control prices completely. Hence in all likelihood, this battle remains to be fought between Adani and JSW.

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Concrete

JSW Cement Commissions 1 MTPA Unit in Rajasthan

Rajasthan grinding capacity rises to 3.50 MTPA after commissioning

Published

2 days ago

October 9, 2026

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JSW Cement has commissioned an additional 1 MTPA cement grinding unit in Nagaur, Rajasthan, taking the company’s total cement grinding capacity to 25.1 MTPA. The commissioning was announced on Tuesday, October 6.

The company said the new unit had increased the total cement grinding capacity at its Rajasthan plant to 3.50 MTPA. The expansion adds to JSW Cement’s production infrastructure as it continues to build capacity across its operating network.

The company’s total clinker manufacturing capacity, including capacity at its joint venture JSW Cement FZC, stands at 9.74 MTPA. Clinker is an intermediate material used in cement production, and its availability supports the company’s grinding operations.

JSW Cement is also pursuing a proposed merger of its listed subsidiary Shiva Cement with the company. The scheme, approved by the boards of the respective companies, involves issuing five fully paid-up JSW Cement equity shares for every 41 shares held by Shiva Cement shareholders other than JSW Cement.

The arrangement remains subject to shareholder and regulatory approvals. JSW Cement currently holds 66.23 per cent of Shiva Cement’s paid-up equity share capital, and the shares held by JSW Cement in the subsidiary will be cancelled under the proposal without any issue of JSW Cement shares against that holding.

The scheme has an appointed date of April 1, 2026, and the company has indicated that completion could take 12 to 14 months, depending on the receipt of approvals. These include clearances from stock exchanges, the Securities and Exchange Board of India, the National Company Law Tribunal and other applicable authorities, along with approvals from shareholders and creditors where required. JSW Cement shares closed at Rs. 113.15 on the BSE, up Rs. 2.05, or 1.85 per cent.

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

2 days ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit in Rajasthan

The Nagaur expansion takes JSW Cement’s total grinding capacity to 25.10 MTPA.

Published

3 days ago

October 8, 2026

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JSW Cement has commissioned an additional 1 million tonne per annum (MTPA) cement grinding unit at its Nagaur Integrated Plant in Rajasthan. The commissioning takes the company’s total cement grinding capacity to 25.10 MTPA.

JSW Cement’s total clinker manufacturing capacity, including its joint venture JSW Cement FZC, now stands at 9.74 MTPA.

The company began operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and a 2.50 MTPA cement grinding unit. With the latest expansion, the plant’s total grinding capacity has increased to 3.50 MTPA.

The additional capacity will cater to cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a combination of equity and long-term debt.

During the quarter ended September 30, 2026, JSW Cement also commissioned an Alternate Fuel Handling System and a Waste Heat Recovery System (WHRS) at the Nagaur plant.

Nilesh Narwekar, CEO, JSW Cement, said the additional grinding capacity was a strategic priority for the company’s expansion in North India. He added that the Alternate Fuel Handling System and WHRS were expected to reduce production costs.