Concrete

ACC-Ambuja: Know about the cement industry?s most anticipated bidding

Cement leaders have been aggressively running to grab the Holcim assets

Published

4 years ago

April 29, 2022

admin

As tension mounts and speculations continue being made, the Indian cement industry has been closely watching the progress of Holcim Group?s exit from the country. The Swiss giant set off a whirlwind by putting its two listed cement arms ? ACC and Ambuja ? out in the market to evaluate options for their stake sale.

Holcim holds a 63.19 per cent share in Ambuja and 4.48 per cent in ACC, which is an Ambuja subsidiary. Ambuja additionally holds its own stake of 50.05 per cent in ACC. Holcim Group?s global cement capacity as of the current financial year is 293 mtpa with around 24 per cent of its total capacities housed in India. Ambuja?s current reported grinding capacity is 31.4 mtpa with plans to expand capacity to 39.9 mtpa by 2024, while ACC?s has been calculated at 34.9 mtpa to be increased to 39.7 mtpa by the first half of the next year.

These numbers mean that any player who manages to take over both ACC and Ambuja will be adding a combined pan-India capacity of 66 mtpa, promptly shooting any global player to a second position.

The contenders

The world?s largest cement maker reportedly has been believed to have held early-stage negotiations with JSW Cement and Adani Group to gauge their interests in this acquisition, with news reports indicating UltraTech as another formidable contender in this race. Apart from these, a few regional players such as Shree Cement have been approached as well.

JSW Cement has a grinding capacity of approximately 15 mtpa. It primarily depends on imported clinkers since its present clinker capacity is 3.2 mtpa only. Shiva Cement, a JSW subsidiary, will increase its clinker capacity by 1.36 mtpa and cement capacity by 1 mtpa.

UltraTech has a consolidated capacity of 119.95 mtpa while Adani does not have a presence in the cement market as of date, but has been planning its foray into the cement industry under its subsidiary Adani Cement Industries formed in July 2021.

Shree Cement?s grinding capacity is 46.4 mtpa and has been consistent in its capacity additions, however, it has done only one acquisition in the domestic market and may reportedly face regulatory hurdles if it shows its interest in this deal.

The investment

Ambuja?s market capitalisation is Rs 764.77 billion and that of ACC?s is Rs 433.89 billion, together making the companies? total market cap at Rs 1.20 trillion. If signed, this deal stands to reportedly be one of the largest in the country.

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.

Recent developments point out that JSW Cement has a couple of US private equity funds keen on this opportunity backing its funding, while Adani has reportedly tied up with multiple foreign banks such as Deutsche Bank and Barclays and domestic banks such as ICICI Bank and Axis Bank for funding the deal.

Benefits to the sector

This deal, if it goes through, should be positive for the sector in the near-to-medium term as the acquirer might not chase growth CAPEX immediately, the Motilal Oswal report observes. ?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.?

ACC has undertaken expansion plans in the Central markets, whereas Ambuja has recently announced its expansion plans in the East. Holcim will obtain 1 per cent of the turnover of ACC and Ambuja as technology and know-how fees.

Everyone involved in the divestment, however, continues to be tightlipped. With a portfolio as impressive as Holcim?s, the industry awaits the results of perhaps the most anticipated and aggressive bidding the Indian cement industry has seen in recent times.

Up Next

ACC-Ambuja: Know about the cement industry?s most anticipated bidding

Don't Miss

Ramco Cements to utilise green energy for clinker production

Concrete

Shree Cement Targets Above Industry Volume Growth In FY27

Chairman says firm will favour organic expansion and higher dividends

Published

12 hours ago

June 16, 2026

admin

Shree Cement expects to outpace the industry in the financial year 2026-27 as it pursues organic expansion and pricing discipline following a recent investor conference. The chairman said the company has completed a pricing realignment and recovered volumes lost during that exercise. Management signalled a clear preference for internal investments rather than acquisitions to support growth.

The company reported that capacity additions and demand growth across core markets are expected to underpin stronger volume performance, with a target of growing volumes at around 1.1 times the industry growth rate. Cash levels are likely to decline as capital expenditure progresses and shareholder distributions increase, the chairman indicated. The board has prioritised higher dividends over a buyback as a means of reducing excess cash.

Shree Cement described a market shift towards value and affordability rather than a race to the lowest price, which links demand expansion more closely with pricing. Historically, prices have risen at around three per cent annually over long periods, the company noted, and while prices may increase faster this year because of cost pressures from geopolitical tensions, a material improvement in industry profitability is not anticipated. In North India, the company expects additional capacity to be absorbed as demand grows, estimating a requirement of roughly 10 million (mn) tonne (t) of incremental demand annually.

The next phase of expansion will focus on the north, west, east and northeast regions, with existing projects and planned capacities viewed as sufficient to meet future demand without pursuing acquisitions. Management said it has already regained lost volumes while sustaining higher prices and will continue to monitor regional opportunities, including a possible investment in West Bengal pending clarity on industrial policy. The company, which has a current market capitalisation of Rs 852,948.9 mn, has seen its shares lose more than 20 per cent over the past year.

Concrete

Ramco Cements’ Hard Worker Campaign Wins Seven Awards

Campaign earns honours for direction, editing and cinematography

Published

2 days ago

June 15, 2026

admin

The Hard Worker campaign by The Ramco Cements has secured seven honours at the Good Ads Matter Awards 2026, adding to its growing list of accolades and reinforcing its standing among the year’s most recognised advertising campaigns.

The awards were presented during the Good Ads Matter Awards Night 2026 held at Mehboob Studios in Mumbai. The campaign received recognition across multiple categories, highlighting excellence in direction, editing, cinematography and storytelling.

Among the honours, the campaign won Silver in the Campaign of the Year – Direction category, while filmmaker Prakash Varma was named Director of the Year for the films Tortoise & Hare and Eco Plaster. Tortoise & Hare also received Silver awards for Best Editing and Best Colour Grading, along with a Bronze award for Best Cinematography. Eco Plaster earned Bronze awards in the Best Direction – Narrative and Best Direction – Humour categories.

Both films extended their award-winning run, with Eco Plaster being recognised for its narrative centred on water conservation through innovative construction solutions, while Tortoise & Hare was honoured for its storytelling and craft execution.

The Hard Worker campaign was built around the idea that hard work deserves recognition and respect. Through culturally rooted and emotionally engaging stories, the campaign has connected with consumers, engineers, masons and the wider construction community across the country.

Commenting on the achievement, A V Dharmakrishnan, CEO of The Ramco Cements Limited, said that the continued recognition across leading creative platforms reflects the company’s commitment to meaningful and authentic communication rooted in the values of the people it serves.

Balaji K Moorthy, Executive Director – Marketing, The Ramco Cements Limited, said the awards recognise the craftsmanship behind the storytelling, from direction and cinematography to editing and narrative execution.

Following recognition at both the Kyoorius Creative Awards and the Good Ads Matter Awards, the Hard Worker campaign continues to demonstrate the impact of purpose-driven storytelling combined with strong creative execution and consumer relevance.

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

2 weeks ago

June 5, 2026

admin

World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.