New Delhi: Gautam Adani, the world’s second richest businessman, has bought India’s cement giant Ambuja Cement and ACC. Now Gautam Adani is planning to double the manufacturing capacity of these two cement companies. Gautam Adani is planning that by the year 2030, the annual cement manufacturing capacity of ACC and Ambuja Cement should reach 140 million tonnes. Birla Group’s UltraTech Cement is currently the leader in India and Gautam Adani is looking to compete with UltraTech Cement by increasing the production capacity of ACC-Ambuja Cement.
Gautam Adani said on Monday, “We expect that at present the production capacity of ACC and Ambuja Cement is 70 million tonnes, which can be increased to 140 million tonnes in the next 5 years.”
The acquisition of ACC and Ambuja Cement was completed last Friday. From port to the renewable energy business, the giant Adani Group wants to shine its business by giving a competitive advantage to the cement business. Gautam Adani Group is going to invest ₹ 20000 crores in Ambuja Cement. This investment will be done through preferential allotment of shares.
This fund will be given as capital required to strengthen Ambuja Cement’s balance sheet and increase capacity. Along with this, investment is being made in Ambuja Cement in terms of acquisition and investment in technology.
Consolidation in India’s cement business may increase after the announcement of capital investment in Ambuja Cement. A cement company from Gujarat along with a cement company from Tamil Nadu and Andhra Pradesh is also trying to expand its business in the eastern part of India. It is expected that Gautam Adani can acquire both these companies.
Gautam Adani Group is making many ambitious plans for the cement business. On the other hand, Aditya Birla Group’s UltraTech Cement is also planning to take its production capacity to 160 million tonnes by 2030. At present, UltraTech Cement has a production capacity of 120 million tonnes per annum.
