Adani Group aims to fetch 20% share in India’s cement sector by FY28

By FY28, the Gautam Adani-led Adani group—which also controls ACC Ltd. and Ambuja Cements—aims to take a quarter of the cement industry in India.

According to a presentation given to investors by Ambuja Cements, the Adani Cement company will carry out its accelerated capital expenditure program through internal accruals and will continue to “remain debt free.”Additionally, Adani Cement is planned to grow at a faster rate than the industry average of sixteen percent, accelerating its capacity expansion to reach 140 million tonnes per annum (MTPA) by FY2028.

“Adani Cement market share targeted to be 20 per cent by FY28 from current 14 per cent,” the Adani group mentioned.

Recently, Sanghi Industries Ltd. was bought by the company. The group already owns property, and part of it is in the advanced phases of acquisition; these are enablers for capacity development.The stockpile of limestone, a significant raw material for the cement industry, totals 8,000 million metric tonnes and is “in possession at nil to nominal premium,” according to Adani Cements.

Ambuja further added, ”better enterprise risk management” and 65 per cent of the total cost of cement has synergies with a group or where the Group is the market leader.”Accelerated Growth and Cost Leadership supported by Group Synergies is one of the most important differentiating points for Adani Cement” .

“Growth will further compound given the opportunities in the Building Materials Industry,” it mentioned.

India, the second-largest cement producer globally, is expected to experience 8-9% growth in demand over the next five years, indicating improved capacity utilization.