Adani: “Historic day as we become 2nd largest cement manufacturer in the country”

19 September, 2022 | Pranay Lad

Adani Headlines

As Adani conglomerate has successfully acquired Ambuja Cements Ltd and ACC Ltd through Endeavour Trade and Investment Ltd (“BidCo”), the chairman Gautam Adani addressed a press conference where he ...

As Adani conglomerate has successfully acquired Ambuja Cements Ltd and ACC Ltd through Endeavour Trade and Investment Ltd (“BidCo”), the chairman Gautam Adani addressed a press conference where he stated with a single stroke the Adani family became the second largest cement manufacturer in the country.

He stated the reason for investing in cement, “Our unwavering faith in the India story and our confidence that India will have a 25–30 trillion dollar economy by 2050 are the first steps in this process. You are all aware of the statistics: while being the second-largest cement production in the world, India only consumes 250 kg of cement per person annually, compared to 1600 kg in China. This is roughly a 7x headroom for expansion. Furthermore, as some of the Government’s plans acquire speed, the long-term average growth in cement demand is estimated to reach 1.2 to 1.5 times the GDP. We project growth at twice this rate.”

“Nation’s growth story unfolds with trillion-dollar investments in infrastructure and housing, cement is an attractive adjacency to our infrastructure business, especially the Group’s ports and logistics business, green energy business, and e-commerce developed. These adjacencies give us a significant competitive advantage and put us input position to gain unmatched scale. I also believe that the Adani Group’s competency in driving operational efficiency is second to none. We will benefit from the learnings of several acquisitions we have made over the past years. As a result, we expect significant margin expansion to become the most profitable cement manufacturer in the country,” he further stated.

He reiterated that every action taken must align with national priorities and pass through the lenses of this belief. The outcomes of their value system and faith in Nation Building are there for all to see.

He stated 11 points while reiterating the conglomerate’s recent investments –

  • We are now the world’s largest solar power company and leading the greening of India
  • We are also leading the global green hydrogen story having committed 70 billion dollars to this business
  • We are the largest airport operator in the nation with 25% of passenger traffic and 40% of air cargo
  • We are the largest Ports and Logistics company in India with a 30% national market share
  • We are India’s largest integrated energy player spanning generation, transmission, distribution, LNG, LPG, city gas, and piped gas distribution. Each of these businesses is growing at double-digit rates.
  • We have won some of the largest road contracts in the country and are well on our way to becoming the largest player in this sector
  • We had a grand IPO of Adani Wilmar – making us the highest valued FMCG company in the country
  • We have declared our path forward in multiple new sectors that include data centers, super apps, aerospace and defense, industrial clouds, metals, and petrochemicals
  • Our finances are stronger than ever before, and we continue to raise billions of dollars from international markets and strategic partners to further accelerate our growth
  • Our market cap now stands at 260 billion dollars – has grown faster than any company ever in India
  • And of course – We are now the country’s second-largest cement manufacturer

He continued his speech by stating, “As I stated at the outset, the purchase of Holcim’s cement assets in India is the largest inward M&A in India’s history in the infrastructure and materials sector. One of the many recent significant transactions we completed is this one. People frequently have questions regarding the Adani Group’s growth strategy. Our confidence in the Indian Growth Story and our belief in nation-building give rise to this concept. It springs from the conviction that in the newly forming international system, power would come from independence, or what many of us refer to as Atmanirbharta. It is based on the idea that no country in the world is better positioned than India to take advantage of four factors that would hasten our country’s economic growth.”

In his closing words, he said, “The first vector is our nation’s demographic dividend that has put us on track to becoming a 30 trillion-dollar economy by 2050. India’s median age will be just 38 years even in 2050. This will be backed by the second vector – the growth of our nation’s middle class. India’s population in 2050 will be about 1.6 billion. The world will never again see a middle class as large as the one India will have. The growth of this middle class will drive an unprecedented surge in demand and consumption.”

He further said, “The third vector is the global drive for sustainability. Renewable power will drive a national green industrial revolution that is just being initiated. This will also be enabled by decentralized power generation which will be transformative, especially for the rural population. Decentralized power gives India the option to accelerate the micro-sizing of ‘everything’. It enables micro-manufacturing, micro-agriculture, micro-water, micro-healthcare, micro-banking, micro-education — everything that our nation’s rural population needs.”

“And finally, the fourth vector is digitization. The combination of India’s youth and the growth in our middle class will accelerate our nation’s digital transformation to create new opportunities. I believe the unmatched digital ecosystem India is creating will generate significant additional uplift on top of our anticipated 8% GDP growth. It will accelerate our journey towards the 30 trillion-dollar GDP target by 2050,” he also said.