Asia’s richest man Gautam Adani has completed the acquisition of cement companies Ambuja and ACC. According to reports, Gautam’s elder son Karan Adani will take charge of the cement business. Adani Group has taken over Ambuja and ACC Cement for $ 10.5 billion i.e. 83.67 thousand crores.

With this takeover, Adani Group has become the second largest cement producer in the country. Aditya Birla Group’s UltraTech Cement is at number one in terms of cement production. According to sources, Karan Adani has been made the non-executive director of Ambuja Cement.

Apart from this, he has also been appointed as non-executive chairman of ACC. Let us tell you that Karan is currently the CEO of Adani Ports and Special Economic Zone Limited (APSEZ). This deal by Adani Group is the biggest acquisition in India’s infra and materials space.

Let us tell you that the ownership of ACC i.e. Associated Cement Companies and Ambuja was owned by Holcim Company. It is a Switzerland-based building materials company. ACC was started on 1 August 1936 from Mumbai. At that time many groups together had laid its foundation. Ambuja Cement was founded in 1983 by Narottam Sekhsaria and Suresh Neotia.

Holcim will cover 17 years of business Holcim Company started business in India 17 years ago. It was considered the largest cement company in the world. After this deal, now the company will wrap up its business from India. Holcim Group had stake in two cement companies Ambuja Cement and ACC Limited in the country. Holcim held 63.19% in Ambuja Cements through Holderind Investments Ltd. and 54.53% in ACC (of which 50.05% was through Ambuja Cements).

Deal completed after regulatory approval The deal has been completed after regulatory approval. The open offer price for Ambuja Cement was Rs 385 per share and for ACC it was Rs 2,300 per share. Holcim’s stake in Ambuja Cement, ACC and the open offer consideration was valued at $10.5 billion.

Excellent manufacturing and supply chain infrastructure Ambuja Cements and ACC currently have a combined installed production capacity of 70 MTPA (Enum per Million Tonnes). Both the companies are amongst the strongest brands in India with excellent manufacturing and supply chain infrastructure. They have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and more than 50,000 channel partners across India. At the same time, Ultra Tech Cement of Aditya Birla Group is the largest company in the country. It has an annual capacity of 119 million metric tons.

Adani Group continues to diversify business Started as a commodity trading firm in 1988, the Adani Group came on the national map after foraying into the port business. Over the years, the group has made strides in green energy, media, oil and gas, mining, airport operations, construction, food processing. Adani Group had entered the cement sector last year under the name of Adani Cement Industries. After this deal, Adani Group has become the second largest cement maker in India.

Ambuja Cement was established in 1983 Ambuja Cement was founded in 1983 by Narottam Sekhsaria and Suresh Neotia. Both these traders had very little knowledge of cement or manufacturing. But he anticipated that cement would be an important resource for a developing economy like India. So he invested in a state-of-the-art cement plant in Gujarat and built a reliable cement brand. Ambuja is considered very good in both quality and strength.

ACC Cement was formed by several groups. ACC i.e. Associated Cement Companies was started on 1st August 1936 from Mumbai. At that time many groups together had laid its foundation. ACC is one of the leading players in the building materials market in India. Its portfolio includes cement, construction chemicals, dry mix products and ready-mix concrete. The various manufacturing units of the company are backed by the Central Technology Support Services Center. In the Indian cement industry, only ACC has this facility.

Being the largest user of limestone, ACC also has a lot of experience in mining. ACC is one of the largest customers of Domestic Coal Industry and Indian Railways. It is also a major user of the country’s road transport network services. ACC has 4 subsidiary companies. ACC Mineral Resources Limited, Bulk Cement Corporation (India) Limited, Lucky Minmet and Singhania Minerals Private Limited. All these subsidiary companies support the core business of ACC.

Holcim’s presence in 60 countries Swiss company Holcim has a presence in 60 countries of the world. Holcim’s Indian operations represent 24% of global cement capacity and 27% of sales. Holcim’s decision to wind up its business in India is a bit shocking. This is because there are still lakhs of kutcha and half-pucca houses in India. In the coming years, construction activities will be seen on a large scale here.

Holcim came to India in 2005. The Swiss giant is now trying to move away from its core business of cement to focus more on building technology. Holcim aims to reach 30% of net sales in the solutions and products segment by 2025. It is now 13%. The solutions and products segment includes businesses ranging from roofing and waterproofing to insulation and renovation.

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