The Adani group has pumped in a hefty $10.5 billion in the strategic cement sector anticipating a surge in demand in a rising India.
Gautam Adani’s conglomerate has acquired a controlling stake in the cement business in India of Swiss giant Holcim. In doing so , the group became the second largest cement producer in the country, after UltraTech, which is owned by Kumar Mangalam Birla, a fellow billionaire.
The deal is expected to contribute to India’s rise, in which a construction boom, driven by urbanization, affordable housing and infrastructure development would be natural.
India is "the world's second-largest cement market and yet has less than half of the global average per capita cement consumption," according to an Adani group statement. "Our move into the cement business is yet another validation of our belief in our nation's growth story," Gautam Adani said after signing the deal in Geneva.
Ambuja, ACC Cements sale: Adani group nears $10bn deal for Holcim India business – YouTube
Ambuja and ACC together can produce at least 70 million tons of cement annually, second only to UltraTech Cement, which can churn out 120 million tonnes.
An Adani statement said that the group had entered into definitive agreements to acquire Holcim's entire stake in Ambuja and ACC, using an offshore special-purpose vehicle.
Gautam Adani, who started his career as a diamond sorter, is, as of now India's richest man with a net worth of $114.8 billion. The group has listed companies in the ports, airports, renewable energy and food products sectors.
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