Concrete

Nailing the mega deal

Published

4 years ago

June 13, 2022

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Adani Group’s takeover of Holcim’s stakes in Ambuja Cement and ACC is touted as the biggest open offer in the history of corporate India.

At the open offer price of Rs 385 per share, using a key industry valuation metric of enterprise value (EV) per tonne, standalone Ambuja Cements NSE has been valued at nearly $299 per tonne. In contrast, ACC at an open offer price of Rs 2,300 per share is valued at about $131.4 per tonne. This reflects the inherent differences in the operational efficiency and thereby performance of the respective companies.

Other leading players in the cement industry, like Ultratech, which has the largest capacity in the sector with nearly 120 million tonnes, is currently valued at the stock markets at nearly $199 per tonne. Shree Cement with a capacity of nearly 47.4 million tonnes is valued at about $223 per tonne. Enterprise value is a measure of the company’s total value, and it is calculated by adding market capitalisation of a company plus its debt and minus the cash in the books.

The standalone Ambuja Cements has one of the highest operating margins in the industry, and in FY 2022, Ambuja Cements standalone operating profit margins were nearly 23 per cent, a decline of 4.6% YoY, on sales of Rs 14,268 crore. Meanwhile, ACC’s standalone operating profit margins were at 18.4 per cent, a fall of nearly 0.9% YoY in the 12 months ended FY 2022. In the case of Ultratech, standalone operating margins were at 22.7 per cent during FY 22, a fall of nearly 4%. Shree Cement recorded a 22.2 percent margin as against 30 percent in the previous year due to surge in power and fuel costs.

It is interesting to compare today’s scenario with the one 10 years ago in September 2012 when ACC was valued at $132 per tonne, similarly, enterprise value per tonne of Grasim and UltraTech was $121 per tonne and $176 per tonne, respectively. In case of Ambuja Cements, the company’s valuation was at $171 per tonne. The 212-million-tonne cement industry then saw major deals at a valuation of as high as $235 a tonne paid by Irish firm CRH for My Home Industries in 2008. Portuguese player Cimpor paid $162 for Shree Digvijay Cement Company in 2007 while Holcim paid $200 for Ambuja Cements.

However, the deal in June 2008 when French firm Vicat paid $100 a tonne for Sagar Cements, was the lowest in the previous years of M&A activities. The story has not changed as event then as now, coal prices rocked the destinies of cement companies. The decline in coal prices from as high as $160 a tonne to as low as $70 a tonne changed fortunes even then.

Coming back to the current scenario, the key problem continues to be the rising prices of pet coke and coal doubling during the year. Cement firms reported single digit sales growth for the second consecutive quarter in January-March driven by gradual demand recovery as well as price hike even as higher costs due to rise in crude oil and coal prices impact profits and margins. Competitive prices are compelling cement makers to explore alternatives to coal.
Over the next few months, the demand for coal and pet coke is expected to slow down while the prices would continue to remain high. Although cement prices have also hiked up, the rise is not enough to make up for the fuel prices. The inability to pass on costs fully to customers remains a primary concern. Now with the RBI raising the repo rate demand is likely to continue to shy away.

Founder & Editor-in-Chief, Pratap Padode

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Niraj Cement JV Wins Railway and Metro Contracts

Two orders worth over Rs 1.64 billion boost infrastructure portfolio

Published

3 days ago

December 11, 2025

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Niraj Cement Structurals (JV) has secured two major contracts from the Northeast Frontier Railway (NF Railway) and the Mumbai Metropolitan Region Development Authority (MMRDA), strengthening its position in large-scale infrastructure development.

The first contract, valued at Rs 815.2 million, has been awarded by NF Railway. It involves the construction of multiple-span 12.20-metre PSC slab underpasses, a major bridge (No. 727), retaining and guide walls, embankments and one minor bridge along the proposed UP and Down line near Deepor Beel. The project covers Km 163/00 to 164/200 between Azara and Kamakhya stations and forms part of the New Bongaigaon–Goalpara Town–Kamakhya (NBQ–GLPT–KYQ) railway doubling programme.

The second contract, worth Rs 826.6 million, has been awarded by MMRDA for constructing a foot overbridge (FOB) equipped with a travellator to improve connectivity between the SGMC monorail station and the Mahalaxmi metro and suburban railway stations.

The two projects underscore the company’s technical capabilities in both transportation infrastructure and environmentally sensitive construction, further strengthening its portfolio in key railway and urban mobility developments.

Concrete

Peddapalli MP Seeks Clear Timelines for Rs 42.10 Bn Projects

Peddapalli MP Gaddam Vamshi Krishna has urged the Union Government to specify execution timelines for major infrastructure projects worth Rs 42.10 billion in his constituency.

Published

3 days ago

December 11, 2025

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Peddapalli MP Gaddam Vamshi Krishna has called on the Centre to provide definitive timelines for a series of sanctioned infrastructure works that he said are essential for the region’s economic progress. Speaking in the Lok Sabha, he stressed that many approved projects remain stalled without clear implementation schedules, limiting their potential impact on connectivity and employment.

A key pending work is the Peddapalli–Manuguru Railway Line, a 137 km stretch linking Peddapalli with Manuguru in Bhadradri Kothagudem district. Although the line has received required approvals and special project status, the execution schedule has not yet been announced. The project is expected to support freight efficiency, improve coal logistics, and strengthen local job creation.

Extending his appeal beyond physical infrastructure, the MP urged the Centre to consider including Peddapalli in the India Semiconductor Mission, citing the district’s industrial ecosystem, skilled workforce, and readiness to support advanced manufacturing.

By pressing for structured timelines, Krishna emphasised the need for coordinated planning and timely execution to advance the constituency’s long-term development goals.

Concrete

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

A regional pre-summit event in Gandhinagar recently gathered leaders to advance AI for good governance.

Published

3 days ago

December 11, 2025

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The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi.

The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching theme of ‘AI for Good Governance: Empowering India’s Digital Future’.

The inaugural session featured key dignitaries including Bhupendrabhai Rajnikant Patel, Chief Minister of Gujarat; Harsh Rameshbhai Sanghavi, Deputy Chief Minister of Gujarat; Arjunbhai Devabhai Modhwadia, Minister for Science & Technology, Government of Gujarat; Manoj Kumar Das, Chief Secretary, Government of Gujarat; Abhishek Singh, Additional Secretary, MeitY and Director General, NIC; and Ponugumatla Bharathi, Secretary, Department of Science & Technology, Government of Gujarat.

High-impact keynote sessions led by national and global experts from MeitY, Bhashini, Google Cloud, Microsoft, IBM Research, NVIDIA, Oracle and AWS examined themes including AI in governance, public service delivery, urban development, rural transformation, healthcare, agriculture, fintech and multilingual accessibility enabled through Bhashini.
Delegates also visited an Experience Zone curated by IndiaAI and DST Gujarat, which showcased AI solutions across governance, agriculture, health and industry.

By convening government, industry and academic stakeholders, the conclave aimed to strengthen India’s AI ecosystem through frameworks that prioritise trust, scalability and public interest. Insights generated from the event will contribute directly to the agenda and outcomes of the India–AI Impact Summit 2026.