Ambuja Cements Expands with Orient Cement Stake

Ambuja Cements, part of the Adani Group, has agreed to acquire a 46.8% stake in Orient Cement for 81 billion rupees ($963 million), further intensifying its rivalry with the Aditya Birla Group in the cement sector. The acquisition is expected to boost Ambuja's production capacity to over 100 million tonnes per annum by FY25, enhancing its market share and presence across India. The deal, fully funded through internal accruals, will add significant value to Ambuja's operations by leveraging Orient Cement's strategic locations and high-quality reserves. This move aligns with the Adani Group's aggressive expansion in the cement industry, following its past acquisitions of Sanghi Industries and Penna Cement Industries. CK Birla Group, the current owner of Orient Cement, views the Adani Group as a suitable successor to drive growth in cement and infrastructure. The transaction is pending regulatory approvals, including from the Competition Commission of India.