Adani Group To Become Most Profitable Cement Manufacturer In India
Adani Group has completed the acquisition of 2 cement companies. Gautam Adani has revealed the growth scope, business goals & future plans of Adani Group.
Billionaire Gautam Adani stated that his company has plans to treble cement manufacturing capacity and become the most profitable producer in the nation days after finalizing a USD 6.5 billion merger of Ambuja Cements and ACC.
He predicted that the government’s push to build infrastructure and India’s record-breaking economic development would lead to a huge margin expansion and a multifold increase in cement demand.
The ports-to-energy business has suddenly grown to be the second-largest cement maker in the nation, according to a speech given by the founder and chairman of the Adani Group on September 17 at an event to celebrate the conclusion of the acquisition.
Last week, Adani Group successfully acquired the two companies’ respective stakes from Swiss giant Holcim.
Gautam Adani described the acquisition as historic and said that it was completed in a record-breaking 4 months, making it the largest inbound M&A transaction to ever take place in India in the infrastructure & materials sector.
He gave grounds for entering the cement market, stating that although India is the world’s second-largest cement producer, its per-capita consumption is only 250 kg, as compared to 1,600 kg for China.
“There is roughly 7 times more room for growth here.” Additionally, “once a number of the government’s initiatives gain traction, the average long-term growth in cement demand is anticipated to reach 1.2 to 1.5 times the GDP. We expect to increase at a rate twice as fast,” he said.
Cement is an “attractive adjacency to our infrastructure business, especially the group’s ports and logistics company, green energy business, and the e-commerce platform being established,” he said. The country has trillion-dollar investment plans for housing and infrastructure.
According to him, “substantial margin expansion to become the most lucrative cement company in the country” will occur as a result of Adani Group’s ability to increase operational efficiency.
“And we expect to go from the existing 70 million tons production to 140 million tons in the next 5 years.”
Adani, 60, described the guiding principle of his organization’s growth as its faith in India’s growth narrative.
According to him, India’s GDP will be worth $25–30 trillion USD by 2050, indicating tremendous development potential.
He described that the Adani Group is the largest solar power company in the world and has pledged to invest USD 70 billion in clean energy ventures, including green hydrogen.
With 25% of all passenger traffic and 40% of all aviation freight, Adani Group operates more airports than any other company in the country. With a 30% market share, it is the biggest port and logistics enterprise in the nation.
Gautam Adani has also said that they are the biggest integrated energy operator in India, operating in the fields of generation, transmission, distribution, LNG, LPG, city gas, and piped gas distribution.
According to him, each of these companies is expanding at a double-digit rate.
