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Reshaping the Competitive Landscape

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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.

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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