Concrete

Adani bags Holcim’s stakes in India

Published

4 years ago

June 13, 2022

admin

In what is being touted as the largest acquisition bid in India’s infra and materials space valued, the race to acquire Holcim’s stake in Ambuja Cements and ACC has culminated in the Adani Group bagging the deal at $10.5 billion, and securing the position of India’s second largest cement manufacturer with a capacity of 70 MTPA.

As soon as Holcim announced its exit from the Indian market, as expected, a fierce bidding war took place to acquire their assets. JSW Cement and Ultratech Cement, backed by Sajjan Jindal and the Aditya Birla Group participated in the bidding process for these assets. However, these shares were finally bought by the Adani Group for $10.5 Billion, which gave them a controlling stake in both of these companies. The total value of the acquisition, $10.5 billion, makes this the largest acquisition by Adani, and India’s largest M&A transaction in the infrastructure and materials space. The deal was carried out through an offshore special purpose vehicle by the
Adani Group.

Fact file

Ambuja Cements docked a revenue of Rs 26,646 crores with a market share of 6.2 per cent, while ACC’s revenue was Rs 15,398 crores with a market share of 6 per cent.
The two companies together have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and over 50,000 channel partners across the country.
Holcim, a Swiss multinational company, used to hold 63.19 per cent in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements), through
its subsidiaries.
The Holcim Group has assets in over 90 countries. The Holcim Group had recently been looking to sell out its non-core assets, and for the same purpose, had divested its Brazilian unit for $1 billion in September 2021.

As of now, the objective of the Adani Group is to move beyond its core business of power plants, ports, and coal mine operations and expand into new fields such as airports, data centres, and digital services. Gaining its foot in the door in the cement industry is, no doubt, a part of that plan. Through this acquisition, Adani Cement, which had never been a player in the cement industry in the past, has suddenly become the second-largest cement producer in India.
Commenting about the acquisition, Gautam Adani, Chairman of the Adani Group said in an official release, “Our move into the cement business is yet another validation of our belief in our nation’s growth story. 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. In statistical comparison, China’s cement consumption is over 7x that of India’s. When these factors are combined with the several adjacencies of our existing businesses that include the Adani Group’s ports and logistics business, energy business, and real estate business, we believe that we will be able to build a uniquely integrated and differentiated business model and set ourselves up for significant capacity expansion.”
It is worth noting that India’s per capita cement consumption is 242 kg, while the global average is 525 kg. This is to be expected as India is still a developing country and there is a lot of scope for infrastructural development. However, it is going to take a lot of effort to tap into this market as even a growing middle class will only be able to generate additional demand in this sector at the rate of its own growth. The Covid-19 pandemic had also slowed things down a lot within the last two years. Almost all infrastructural development projects, public and private alike, were halted because of the restrictions imposed by the government. However, that is also changing now, and as restrictions are being relaxed, infrastructural projects are picking up their pace again.
All of these above aspects point towards opportunities for tremendous growth in the cement sector. However, the unique aspect that makes the Adani Group’s jump into the cement sector is that the cement business will be complementary to the Adani Group’s already existing businesses. “…several adjacencies of our existing businesses that include the Adani Group’s ports and logistics business, energy business, and real estate business, we believe that we will be able to build a uniquely integrated and differentiated business model and set ourselves up for significant capacity expansion,” said Adani.
As with the rest of the Adani portfolio, the cement business will be aligned to the UN Sustainability Development Goals with clear focus on SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action), said the statement.

Up Next

Star Cement eyes expansion

Don't Miss

Technology advancement has opened up opportunities

Concrete

Cement Margins to Erode as Energy Costs Rise: CRISIL

CRISIL warns of 150–200 bps margin decline this fiscal

Published

15 hours ago

April 17, 2026

admin

Crisil Intelligence (CRISIL) released a report on April 13, 2026, indicating Indian cement manufacturers face margin erosion of 150–200 basis points this fiscal, reducing operating margins to between 16 per cent and 18 per cent. The firm noted that this represents a reversal from the prior year when margins expanded by 260–280 basis points. The analysis attributed the shift to rising input costs despite steady demand.

The report said that power and fuel, which typically account for about 26–28 per cent of production cost, are expected to increase by 10–12 per cent year on year, driven by higher prices for crude oil, petroleum coke and thermal coal. Brent crude was assessed as likely to trade between $82 and $87 per barrel, and industrial diesel prices rose by 25 per cent in March, raising logistics and procurement expenses. Such increases have therefore heightened cost pressures across the value chain.

Producers plan to raise selling prices by one–three per cent, which would put the average retail price of a cement bag at around Rs355–Rs360, according to the report. CRISIL’s director Sehul Bhatt was cited as saying that these hikes will at best offset a four–six per cent rise in production costs, leaving little room for higher profitability. The report added that intense competition and continual capacity additions constrain the extent to which firms can pass on costs.

Demand conditions remain supportive, with CRISIL projecting volume growth of six point five–seven point five per cent this fiscal on the back of accelerated infrastructure projects and steady industrial and commercial consumption. Nonetheless, the pace of recovery is sensitive to developments in West Asia, the speed of government infrastructure execution and monsoon performance. The agency noted that any further escalation in energy prices or delays in project execution would widen margin pressures.

Overall, the sector will continue to grow but with compressed margins as energy cost inflation outpaces the limited ability to raise prices. Investors and policymakers will therefore monitor both input cost trajectories and policy measures aimed at alleviating supply chain constraints.

Concrete

Haver & Boecker Niagara to showcase solutions at Hillhead

Focus on screening tech, diagnostics and quarrying efficiency

Published

15 hours ago

April 17, 2026

admin

Haver & Boecker Niagara will showcase its mineral processing technologies at Hillhead 2026, scheduled from June 23–25 in Buxton, UK.

At Stand PA3, the company will present its end-to-end solutions including screeners, screen media and advanced diagnostics, with a focus on improving efficiency, uptime and throughput for aggregates producers.

Highlighting its screen media portfolio, the company will feature Ty-Wire media with hybrid design offering up to 80 per cent more open area, alongside FLEX-MAT® solutions designed to enhance wear life and throughput while reducing blinding and clogging.

The showcase will also include its PULSE Diagnostics suite, comprising vibration analysis, condition monitoring and impact testing, aimed at assessing equipment health and preventing unplanned downtime.

Commenting on the event, Martin Loughran, Sales Manager, UK & Ireland, said, “Hillhead presents an excellent opportunity for us to demonstrate how we deliver innovative technologies along with long-term service and technical support.”

The company will also highlight its Niagara F-Class vibrating screen, designed to reduce structural vibration and improve operational reliability under demanding conditions.

The participation reflects Haver & Boecker Niagara’s focus on supporting quarrying operations with advanced screening solutions and predictive maintenance technologies.

Concrete

Siyaram Recycling Secures Rs 21.03 mn Order From Anurag Impex

Domestic Fixed Cost Contract To Be Executed Within Seven Days

Published

3 days ago

April 15, 2026

admin

Siyaram Recycling Industries Limited (Siyaram Recycling) has informed the stock exchange that it has secured a purchase order for brass scrap honey from Anurag Impex. The company submitted the intimation on 10 April 2026 from Jamnagar and requested the filing be taken on record. The filing was made under the provisions of regulation 30 of the SEBI listing regulations and accompanying circular. The intimation referenced the SEBI circular dated 13 July 2023 and included an annexure detailing the terms.

The order carries a fixed cost value of Rs 21.03 million (mn) and is to be executed domestically within seven days. The contract was described as a fixed cost engagement and the customer was identified as Anurag Impex. The announcement specified that the order size contributes a short term consideration to the company. Owing to the brief execution window, logistics and dispatch were expected to be prioritised.

The filing clarified that neither the promoter group nor group companies have any interest in the purchaser and that the transaction does not constitute a related party transaction. Details were provided in an annexure and the document was signed by the managing director, Bhavesh Ramgopal Maheshwari. The company referenced compliance with SEBI disclosure requirements in its notification. The notice indicated that no related party approvals were required owing to the nature of the transaction.

The order is expected to provide a modest near term revenue inflow and to be processed within the stated execution window given the nature of the product and the fixed cost terms. Management indicated the contract will be executed in accordance with standard operational procedures and accounting recognition at completion. The development signals continuing demand in the secondary metals market for brass scrap.