## Adani Cement Aims for 20% Market Share by 2028
Adani Cement, the cement arm of the Adani Group, has ambitious plans to capture 20% of the Indian cement market by FY2028. This aggressive growth strategy is outlined in a recent investor presentation by Ambuja Cements, a subsidiary of Adani Cement.
The company plans to achieve this target through a combination of organic growth and strategic acquisitions. Adani Cement intends to implement an accelerated capex program funded by internal accruals, ensuring the business remains debt-free. Additionally, the company aims to expand its capacity at a rapid pace, targeting a 16% growth rate to reach 140 million tonnes per annum (MTPA) by FY2028.
Adani Cement is currently the second largest cement producer in India, behind UltraTech Cement. The company acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland's Holcim Group in 2022 for $6.4 billion. This acquisition significantly boosted Adani Cement's market share and production capacity.
Ambuja Cements, along with its subsidiary ACC Ltd, has a current production capacity of 77.4 million tonnes of cement annually. The company operates 18 integrated cement manufacturing plants and 18 cement grinding units across India.
Land Availability: The group has secured land for future expansion and possesses significant limestone reserves, a key raw material for cement production.
Adani Cement has secured long-term arrangements for fly ash, a crucial supplementary cementitious material, ensuring a stable supply for future growth.
The company leverages synergies with other Adani Group companies, leading to cost leadership and better enterprise risk management.
Ambuja Cements remains debt-free with a strong net worth and significant cash reserves.
The Indian cement industry is expected to grow at a healthy rate of 7-8% in the coming years, driven by increasing infrastructure development and urbanization. Adani Cement is well-positioned to capitalize on this growth and solidify its position as a leading player in the Indian cement market.