Adani Group is trying its best to become the king of the cement industry. After acquiring one cement company after another, the group is now eyeing ITD Cementation India. If reports are to be believed, the group may soon acquire 46.64 percent promoter stake as it has become a frontrunner in this race. This move is expected to boost the in-house civil engineering expertise of the infrastructure group. If the acquisition happens, it will be valued at Rs 5,888.57 crore (about $700 million), which includes a fully subscribed open offer after the purchase of promoter stake.
The deal will strengthen the Adani Group's infrastructure portfolio, which already comprises several sectors including airports, highways, ports, power plants and real estate. With this acquisition, the group will further enhance its engineering, procurement and construction (EPC) capabilities, giving it a competitive edge in its ongoing projects. According to the Economic Times, the two parties have reportedly inked an agreement earlier this week and a formal announcement is expected soon. ITD Cementation India ITD Cementation India has a rich heritage dating back to pre-independence India. It is originally an EPC (engineering, procurement and construction) company based in the UK. Over the years, the company has changed ownership several times, but it continues to be a major player in India's civil engineering and construction landscape.
For the Adani Group, acquiring a majority stake in ITD Cementation represents a strategic expansion into civil infrastructure, complementing its existing focus on large-scale projects. The group's existing portfolio includes a range of infrastructure projects ranging from airports and highways to renewable energy and real estate. By incorporating ITD Cementation's engineering capabilities, Adani can potentially execute its projects more efficiently and reduce reliance on external contractors.
The acquisition of ITD Cementation is in line with the group's aggressive growth strategy. Adani is rapidly expanding its presence in various sectors, especially cement and infrastructure, through both organic and inorganic means. Let us tell you that at the 32nd Annual General Meeting of Adani Enterprises in June, Chairman Gautam Adani emphasized the group's readiness to take advantage of the large-scale infrastructure opportunities emerging in India.
Addressing shareholders via video conference, Adani said the company's position as a leading infrastructure player has made it uniquely positioned to benefit from the country's estimated $2.5 trillion infrastructure spending. We are fundamentally an infrastructure company and are well positioned to take advantage of the opportunities that lie ahead. He emphasised the key role of state governments in driving infrastructure development across India, and pointed out that most of the funding and action happens at the state level. While the national narrative sets the stage for infrastructure spending, the bulk of the funding and action happens at the state level. The Adani Group's vast operations are spread across 24 states in India, making it a key player in implementing infrastructure initiatives.
