Industrialist Gautam Adani (file photo)Image credit source: PTI
Adani Group is making all-out efforts to become the king of the cement industry. After acquiring one cement company after another, the group is now eyeing ITD Cementation India. If rumours are to be believed, the group may soon acquire 46.64 per cent of the promoter’s stake as it has emerged as a front-runner in this race. The move is expected to boost the infrastructure group’s in-house civil engineering expertise. If the acquisition goes through, it will be valued at Rs 5,888.57 crore (around $700 million), which includes a fully-subscribed open offer after the buyout of the promoter’s stake.
Adani Group will get this benefit from this deal
The deal will strengthen the Adani Group’s infrastructure portfolio, which already includes sectors such as airports, roads, ports, power plants and real estate. With this acquisition, the Group will further enhance its engineering, procurement and construction (EPC) capabilities, giving it a competitive edge in its ongoing projects. According to the Economic Times, the two parties reportedly reached an agreement earlier this week and a formal announcement is expected soon. ITD Cementation India ITD Cementation India has a rich heritage dating back to pre-independence India. It is basically an EPC (engineering, procurement and construction) company based in the UK. Over the years, the company has changed ownership several times but remains a major player in India’s construction and civil engineering landscape.
Adani Group’s dominance will increase in civil infrastructure
For the Adani Group, acquiring a majority stake in ITD Cementation represents a strategic expansion into civil infrastructure, complementing its existing focus on large-scale projects. The group’s current portfolio includes a number of infrastructure projects ranging from airports and roads to renewable energy and real estate. By bringing in ITD Cementation’s engineering capabilities, Adani can potentially execute its projects more efficiently and reduce reliance on third-party contractors.
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The acquisition of ITD Cementation is in line with the group’s aggressive growth strategy. Adani is rapidly expanding its presence across various sectors, especially cement and infrastructure, both organic and inorganic. Let us tell you that at the 32nd Annual General Meeting of Adani Enterprises in June, Chairman Gautam Adani highlighted the group’s readiness to tap into the large-scale infrastructure opportunities emerging in India.
Gautam Adani said this
Addressing shareholders via video conference, Adani said the company’s position as a leading infrastructure player puts it in a unique position to benefit from the country’s estimated $2.5 trillion infrastructure spend. “We are fundamentally an infrastructure company and are well positioned to take advantage of the opportunities ahead.” He stressed on the important role of state governments in driving infrastructure development across India, noting that most of the funding and action happens at the state level. While the national narrative sets the stage for infrastructure spending, most of the funding and action happens at the state level. The Adani Group’s vast operations are spread across 24 states in India, making it a key player in implementing infrastructure initiatives.
