Adani Group prepares $3 billion war chest to dethrone Aditya Birla Group’s UltraTech Cement

Adani Group looks to dethrone UltraTech Cement: The Adani Group is actively considering the acquisition of multiple cement companies, including Penna Cement, Saurashtra Cement, the cement business of Jaiprakash Associates, and Vadraj Cement owned by ABG Shipyard. This move aligns with the expected surge in demand for cement due to the government’s infrastructure development plans and record capital expenditure.
According to an ET report, with a dedicated investment of $3 billion, the group aims to enhance its capacity and become the leading cement manufacturer in the next three to four years, surpassing UltraTech of the Aditya Birla Group.
The Adani Group is willing to offer $85-120 enterprise value (EV) per ton for these acquisitions and may pay a premium for firms with expansion potential, limestone mines, and packing terminals, the report said.

Penna Cement, valued at around Rs 9,000 crore, is undergoing capacity expansion from 10 MTPA to 15.5 MTPA, potentially increasing its valuation. Saurashtra Cement, with a market capitalisation of Rs 1,487 crore, and the cement assets of Jaiprakash Associates are also on the group’s radar.
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The group’s recent acquisition of Sanghi Cement at $100 EV per ton indicates their strategic approach. Penna Cement and Saurashtra Cement have respective capacities of 2.8 MTPA and around 5 MTPA, while Jaiprakash Associates and Vadraj Cement stand at 9.5 MTPA and 6 MTPA, respectively. Notably, Jaiprakash Associates and Vadraj Cement are undergoing bankruptcy proceedings.
Ambuja Cement is likely to be the preferred vehicle for the group’s acquisitions, given its cash and cash equivalents of Rs 24,338 crore as of the end of April, bolstered by Rs 8,339 crore from promoter warrant money. The company has no debt. However, Adani may opt for ACC if synergies prove more advantageous, especially in southern India, where the group holds a smaller market share.