A major change will occur in the cement sector
It seems that a big earthquake is coming in the cement sector in India. Both Aditya Birla Group and Adani Group are continuously competing with each other in this segment, and now Jindal Group can also give a big challenge to both of them in this sector. You can start with Orient Cement. What is all the deal?
The country’s largest cement company, UltraTech (Aditya Birla Group), is continuously working to increase its market share and capacity. Its recent deal with India Cement is a case in point. At the same time, the country’s second largest cement company, Adani Cement (ACC and Ambuja), is also expanding its expansion by adopting the route of acquiring many small cement companies. Now comes the matter of Orient Cement…
Cement from the East that everyone wants
CK, formed from a fraction of the Birla family. Orient Cement Limited is a Birla Group company. This company has the capacity to produce 85 lakh tonnes of cement per annum. A period of consolidation is being witnessed in the cement sector and both the Aditya Birla Group and Adani Group are in talks to buy Orient Cement.
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Now, according to an ET report, Sajjan Jindal’s JSW Cement is also a CK in Orient Cement Limited. Birla is considering acquiring a promoter stake in the group. Thus, Birla, Adani and Jindal are now in the ‘Dangal’ camp for the acquisition of this company.
Adani had won the battle of 2022
This ‘scramble’ between these three groups is not the first time that it has happened in the cement sector. Even in 2022, the three groups were competing with each other to buy Holcim’s Indian business. This bet was then won by Adani Group and thus became the second largest cement company in the country. This was the largest deal ever made in the country’s cement sector.
What is JSW’s strength?
JSW Cement’s production capacity is 1.66 million tonnes. The company has cement plants in Maharashtra, Andhra Pradesh, Karnataka, Odisha and West Bengal. The company has set a target of increasing its production capacity to 26 million tonnes by 2025-26 and 50 million tonnes by 2030.
