Adani’s consolidation of its cement businesses marks a major shift in the Indian cement landscape, challenging industry leaders and reshaping competitive dynamics. ICR explores how this move could redefine market strategy, scale, and efficiency—read the full story to uncover the implications.
The Indian cement industry is currently witnessing a wave of consolidation and capacity expansion. UltraTech Cement, part of the Aditya Birla Group, remains the market leader with a capacity of around 135 MTPA. It continues to expand aggressively with a target to reach 200 MTPA in the coming years. UltraTech has recently acquired smaller regional players and is investing in green energy and digital transformation to cement its leadership.
Shree Cement, Dalmia Bharat, JSW Cement, and India Cements are also expanding capacities and investing in sustainability-led innovations. Shree Cement, with over 50 MTPA, is focused on cost-efficiency and clinker optimisation. Dalmia Bharat is rapidly expanding in the eastern and southern markets and has pledged to become carbon-negative by 2040. JSW Cement is banking on eco-friendly cement and targeting capacity additions in western and southern India.
Himanshu Ghawri, Partner, PwC India, says, “Mergers in the cement industry offer substantial opportunities to streamline compliance processes and cut operational overheads by unifying and optimising key functions. By bringing related entities—particularly those operating under contract manufacturing or tolling arrangements—under one roof, companies can consolidate environmental clearances, tax filings, statutory licenses, and other regulatory submissions, thereby reducing the number of filings and administrative complexity. A single corporate structure enables the standardisation of quality management systems across plants and simplifies the process of obtaining and renewing government approvals for product standards, environmental norms, and industrial operations.”
“Consolidation also eliminates redundant processes in procurement, finance, HR, legal, and administration, replacing them with shared services and centralised decision-making to boost agility and lower fixed costs. Economies of scale further improve cost efficiency, as fixed overheads such as compliance staff, legal advisors, and auditors are spread across a larger operational base, while procurement and logistics benefit from bulk efficiencies. Moreover, capital-intensive projects like Waste Heat Recovery Systems (WHRS), IT infrastructure, mining leases, or advanced digital technologies such as AI can be deployed more cost-effectively across a consolidated entity, reducing per-tonne investment costs and enhancing returns on capital” he adds.
The competitive intensity is further magnified by the entry of global players and private equity investments. Companies like HeidelbergCement and Holcim (prior to its exit) brought international best practices to India. Now, Adani’s aggressive consolidation places it in direct contention
with UltraTech—not just in terms of scale, but also influence across procurement, project bidding, and price negotiations.
Cementing a Giant
In a strategic move that is set to reshape the contours of the Indian cement industry, the Adani Group has initiated a sweeping consolidation of its cement operations under a single umbrella. By bringing together Ambuja Cements, ACC, Sanghi Industries, Penna Cement, and Orient Cement under what could be branded as “Adani Cement,” the group aims to unify operations, streamline compliance, and leverage economies of scale. With a combined capacity already crossing 100 million tonnes per annum (MTPA) and ambitious plans to reach 140 MTPA by FY2028, Adani is positioning itself not just as a dominant domestic player, but as a global cement powerhouse.
The National Company Law Tribunal (NCLT) recently approved the merger of Adani Cementation with Ambuja Cements, reinforcing the conglomerate’s “One Business, One Company” vision. The consolidation is more than just a financial maneuver—it reflects a broader industry trend of vertical integration, operational synergy, and market consolidation. As India continues its infrastructure expansion, the race for cement dominance has never been more intense.
Strategic Rationale Behind the Move
Adani’s cement consolidation is designed to streamline multiple brands and capacities into a single, efficient entity. Merging entities like Penna Cement and Sanghi Industries into Ambuja Cements is expected to simplify the organisational structure and reduce administrative overhead. The move
also aligns with Adani’s infrastructure-first vision, enabling a more cohesive supply chain and centralised decision-making.
Moreover, the consolidation is expected to unlock significant cost synergies, especially in logistics and procurement. A single command structure allows for centralised negotiation with vendors, optimised freight movement, and integrated distribution networks. In a sector where logistics can constitute up to 30 per cent of total production costs, such optimisation can significantly improve margins.
Another advantage lies in brand unification. While Ambuja and ACC are legacy names, integrating regional players like Penna and Sanghi under one corporate roof allows Adani to target specific geographies more effectively while still presenting a consolidated brand identity to institutional clients and government buyers.
According to Milind Khangan, Marketing Head, Vertex Market Research, “The Adani Group is carrying out a comprehensive reorganisation of its cement business under its ‘One Business, One Company’ strategy, aimed at integrating its diverse holdings into a single corporate entity named Adani Cement. The consolidation process began in September 2022 with the $6.4?billion acquisition of Holcim’s majority stakes in Ambuja Cements and ACC, positioning Ambuja as the focal point for integration. This was followed by the purchase of Sanghi Industries in December 2023 to strengthen its presence in western India, the acquisition of Penna Cement in August 2024 to expand in the southern market, and in April 2025, an increase in its stake in Orient Cement to 46.66 per cent, making Adani the promoter with control. On 18?July?2025, the National Company Law Tribunal sanctioned the amalgamation of Ambuja Cements with Adani Cement, effective 1?April?2024, bringing limestone reserves and new assets into Ambuja. The group has board approvals to merge Sanghi and Penna into Ambuja by the end of 2025 and is considering integrating ACC as the final step, with Orient Cement set to serve as a principal manufacturing facility post-merger.”
In FY?2025, Adani Cement, including Ambuja, crossed 100?MTPA capacity, ranking among the world’s top ten cement producers and becoming India’s second-largest after UltraTech. The group reported sales of 65?million metric tonnes in FY?2025, claiming to supply nearly 30 per cent of cement used in Indian homes and infrastructure. With a current market share of around 14 to 15 per cent, Adani aims to reach 20 per cent by FY?2028, supported by aggressive brownfield expansions targeting 118?MTPA by FY?2026 and 140?MTPA by FY?2028.
Implications for the Indian
Cement Landscape
The implications of Adani’s consolidation ripple across the value chain. For competitors, this move sets a new benchmark for operational integration and capital efficiency. Smaller and mid-sized players may now face greater pressure to either scale up or align with larger entities to survive.
From a market standpoint, this consolidation may lead to regional duopolies or oligopolies, particularly in high-growth zones like Gujarat, Maharashtra, and Andhra Pradesh. This could improve price stability and supply chain coordination but may also attract regulatory scrutiny concerning market dominance. For suppliers and contractors, the emergence of mega-entities like Adani Cement means larger, more standardised procurement processes and tighter contract terms. Meanwhile, customers—especially institutional buyers and infrastructure developers—could benefit from integrated logistics, consistent product quality, and assured supply.
“Consolidation in the Indian cement sector is expected to reshape the competitive landscape and pricing dynamics in both the short and long term. In the immediate aftermath of a merger, consolidated companies typically focus on improving capacity utilisation across their newly acquired or integrated assets. This drive to maximise production can lead to excess material entering the market, disrupting the supply-demand balance and triggering aggressive price-based promotions, discounts, and dealer incentives as competitors strive to protect market share. However, in the medium to long term, pricing generally stabilises as the market adjusts to the new structure, with a smaller number of dominant players adopting more rational pricing strategies and defending their core markets, resulting in healthier price realisation. Additionally, larger consolidated entities benefit from enhanced bargaining power with suppliers and channel partners, strengthening their ability to sustain prices and margins even in competitive environments” says Pallab Dutta, Partner, PwC India.
This level of integration could set the stage for more digitisation in plant operations, predictive maintenance, and ESG compliance—all areas where Adani has already shown interest through other verticals like energy and logistics.
Conclusion
Adani’s move to bring all its cement businesses under one roof is not just a business consolidation—it’s a strategic statement. It signals a new era where scale, speed, and synergy are central to market leadership. As India’s infrastructure and housing sectors grow, the cement industry will continue to be a bellwether for broader economic trends.
This consolidation also raises the stakes for existing players, pushing them to invest more aggressively in innovation, sustainability, and digital infrastructure. With UltraTech, Shree, Dalmia, and JSW all racing to expand, the Indian cement landscape is set for a phase of intense, high-stakes competition. Whether this leads to long-term price rationalisation or increased market control remains to be seen—but one thing is clear: the cement war is heating up, and Adani has just raised the bar.
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