Adani Group’s Strategy to Reduce Competition Through Acquisition of Rivals
Adani Group is planning to acquire Jaypee Cement, another competitor in the cement sector in India, after its recent acquisition of ACC Limited and Ambuja Cement for a combined value of $6.5 billion in 2022. The acquisition of Jaypee Cement will enable Adani Group to increase its production capacity to nearly 10 million tonnes per annum (MTPA) in Madhya Pradesh (MP), Uttar Pradesh (UP), Andhra Pradesh (AP), and Karnataka. Adani Group is the second-largest manufacturer of cement in India, after UltraTech Cement. The increase in production capacity through this acquisition could provide Adani Group with a competitive advantage in the Indian market.
Projected Growth in Indian Cement Industry
Advancements in Indian infrastructure are expected to result in an increase in the size of the cement industry in the years ahead. Based on GlobalData’s analysis, the market size of the cement industry is projected to grow from $28.09 billion in 2021 to $44.70 billion by 2026. The year 2020 recorded a significant decline in the cement market as a result of the lockdown and travel restrictions owing to the COVID-19 pandemic. However, the market is recovering and is projected to register continuous growth over the next five years.
Several companies are devising strategies to capitalize on the expanding market opportunities and gain a larger share of the market, resulting in greater competition in the cement industry.
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