Orient Cement: How Adani is 'cementing' his presence in industry

Ambuja Cements, a subsidiary of the Adani Group, declared on Tuesday, October 22, that it has entered into a binding agreement to acquire Orient Cement Ltd (OCL) for an equity valuation of ₹8,100 crore. 

The acquisition involves Ambuja purchasing a 46.8% share in OCL from its current promoters and certain public shareholders at a price of ₹395.40 per share, as stated in a filing with the exchange. This transaction is being conducted at a 12% premium over the most recent closing price.

How Adani 'cements' his industrial footprints

The Adani Group has made a remarkable number of acquisitions in the cement sector, which include:

Ambuja Cements: In September 2022, the Adani Group secured a 63.15% ownership stake in Ambuja Cements from Holcim.

ACC Ltd: The Group acquired a 56.69% stake in ACC Ltd, with 50.05% of this stake held through Ambuja Cements.

Sanghi Industries Ltd: The acquisition of Sanghi Industries Ltd took place in December 2022.

Penna Cement: In 2024, the Adani Group added Penna Cement to its portfolio.

Asian Concretes and Cements: ACC, which is owned by the Adani Group, also acquired Asian Concretes and Cements.

The cement operations of the Adani Group encompass 18 integrated plants, 19 grinding facilities, and more than 82 ready-mix concrete plants. The Group aspires to become the leading cement producer in India, targeting a 20% market share in the Indian cement industry by the fiscal year 2027-28.

Additionally, the company operates four bulk cement terminals located in Kolkata, Gopalpur, Karaikal, and Kochi in India, as well as one terminal in Colombo, Sri Lanka. It also possesses a cement carrier with a capacity of 25,000 tonnes. The Adani Group's objective of reaching a production capacity of 140 million tonnes per year by 2028 commenced in mid-2022 with the acquisition of Ambuja Cements and ACC from Holcim.