💪 The Cement War - Adani vs Birla 💪
🏗 Cement is a boring business. For more than one decade, the Aditya Birla Group’s Ultra Tech was the leader with a huge gap between the 2nd place Ambuja Cement. But, then the Adani storm entered the cement sector.
📈 With a deal to acquire Ambuja and ACC, Adani becomes the 2nd biggest cement maker in India overnight. Adani even up the ante by announcing to double the capacity in the next 6 years, which will put Adani a breath away from Ultra Tech’s 1st position. Ultra Tech fired back by announcing its plan to increase capacity to 200 mtpa by 2027.
🤑 This started massive mergers and acquisitions. Adani Group controls the factor that influences cement production and cement cost. This resulted in decreasing cement prices in India since 2023 even after the real estate sector was hot and record high government capex. Adani and Ultra Tech have already made 6 deals in the last 2 years.
🤔 Adani or Birla, who will win the cement war?
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