Adani group that has so far only acquired cement businesses has also prepared a strategy to build new facilities from scratch.
The group has finalized its discussions with the Odisha government and the target is to make the cement plant ready by FY28.
This move is part of Adani's broader strategy to become one of India's largest cement producers. The investment for this project is estimated to be between ₹3,000-3,500 crore.
Earlier in August, Adani Group's Ambuja Cements has announced a significant investment of ₹1,600 crore to set up its first cement grinding unit in Bihar. However, this involves establishing a facility to grind cement clinker into finished cement, rather than constructing a cement manufacturing plant from the ground up.
Since entering the cement industry in 2022 by acquiring Ambuja Cements, the Adani Group has made several strategic acquisitions to rapidly expand its production capacity.
The Adani Group has made several strategic acquisitions to expand its presence in the cement industry. These include the acquisition of Sanghi Industries' cement business, which significantly boosted Adani's production capacity.
Additionally, Adani acquired Hyderabad-based Penna Cement, further expanding its footprint in southern India. The acquisition of CK Birla group's Orient Cement also added substantial capacity to Adani's portfolio. Gujarat-based Saurashtra Cement is in advanced discussions for acquisition by Adani. The group is also exploring the acquisition of Jaiprakash Associates' cement business and considering the acquisition of Vadraj Cement, owned by ABG Shipyard.
These acquisitions are part of Adani's ambitious plan to become one of India's largest cement producers, aiming for a production capacity of 140 million tonnes per annum by the financial year 2027-28.
Back to Adani's Ambuja Cements, Ambuja reported a 42.5% year-on-year decline in net profit for the second quarter of the fiscal year 2024-25, with net profit falling to ₹455.96 crore. Despite the profit decline, Ambuja Cements achieved a 9% growth in sales volume, reaching 14.2 million tonnes in Q2, the highest in the past five years.
To recall, last year in March it was reported that Adani Group is setting up two new cement manufacturing plants in Andhra Pradesh, with a combined capacity of 10 million tonnes per annum (MTPA). These plants said to be be located in Kadappa and Nadikudi.
Apart from cement, Adani Enterprises has begun operations of a new copper unit in Mundra, Gujarat, with a capacity of 1 million tonnes per annum (MTPA). The project is expected to create 7,000 direct and indirect employment opportunities.
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