Indian billionaire Gautam Adani acquires cement business to expand

Ambuja Cements, the group's cement unit controlled by Indian billionaire Gautam Adani, approved a merger with two other companies to streamline its cement business as it looks to expand amid India's construction boom.

On Tuesday, Ambuja announced that its board of directors has approved the merger with Sanghi Industries. Sanghi shareholders will receive 12 Ambuja shares for every 100 shares held. In August, Ambuja acquired 100% of Penna Cement for US$1.2 billion.

“This merger is aimed at making our company more competitive and efficient, ultimately enhancing shareholder value,” Ajay Kapoor, CEO of Adani Group's cement business, said in a statement. “Strengthening working capital management and internal The funds will support the growth of our business operations.”

The merger of the two companies should be completed within one year after receiving approval from stakeholders and regulators.

Adani Group has rapidly expanded its cement business through a series of acquisitions. In 2022, it acquired Holcim's Indian assets, making the group the second-largest cement producer in India.

The group's expansion in the industry has sparked fierce competition with billionaire Kumar Mangalam Birla, whose Ultratech Cement is the industry leader with an annual production capacity of more than 150 million tonnes.

After the merger, Ambuja Cement has 22 manufacturing plants and 21 grinding plants across the country, with a production capacity of 89 million tons.

Last month, U.S. prosecutors accused Adani and other top executives of orchestrating a $250 million bribery scheme to secure lucrative energy contracts from the Indian government. The accusation wiped nearly $16 billion from Adani's net worth in a week.

According to statistics, Adani’s current net worth is $62.9 billion Forbes Instant data. Apart from the cement business, the Adani Group has diversified business interests in ports, airports, power generation and transmission, and green energy.