Ambuja Cement Takes Over Orient Cement, Adani Sets Stage for Cement Supremacy

In a major consolidation move, Ambuja Cement—owned by the Adani Group—has officially completed the acquisition of a 37.8% stake in Orient Cement Limited (OCL), which is part of the CK Birla Group. Following this acquisition, Ambuja Cement has assumed the role of promoter of OCL.

Alongside the promoter stake, Ambuja Cement has also purchased 1.82 crore shares (8.87%) from public shareholders, bringing its total ownership to 46.66%.

Orient Cement Confirms Transaction

"Orient Cement informed the stock exchange that Ambuja Cement has completed the acquisition of 7,76,49,413 equity shares (37.79% of the equity share capital) from the promoter group."

Ambuja had earlier announced its intent to acquire OCL in October 2023, as part of a broader expansion plan. The total deal value was pegged at ₹8,100 crore.

OCL’s Manufacturing Footprint

Orient Cement operates three major manufacturing facilities located in:

• Telangana

• Karnataka

• Maharashtra

These units offer significant geographical coverage across southern and western India—two critical markets for cement consumption.

Leadership Overhaul After Ownership Change

Following the change in ownership, a major shift in the company’s top management has taken place:

• Resignations submitted by Chandrakant Birla, Amita Birla, and Desh Deepak Khetrapal

• Four independent directors have also stepped down

Moreover, the company has implemented the following board changes:

"Its CFO, Prakash Chand Jain, has been replaced by Kajal Sarda with effect from April 23, 2025."

"The board led by the new promoter has appointed Vaibhav Dixit as Executive Director. It has also appointed Vinod Bahety as Chairman & Non-Executive Non-Independent Director with effect from the conclusion of the meeting on April 22, 2025."

"Besides, three independent directors — Sudhir Nanavati, Shruti Shah and Ravi Kapoor — also appointed on the board."

"Appointment of the Executive Director, Non-Executive Non-Independent Director and Non-Executive Independent Directors, as stated above, will be subject to the approval of the shareholders of the Company."

Adani’s Cement Expansion Strategy

The Adani Group is aggressively growing its cement capacity through both inorganic acquisitions and brownfield expansions. The group's ambition is to reach 140 MTPA capacity by FY28, which will:

• Reduce logistics costs

• Improve lead distances

• Strengthen presence in core markets

Recent Acquisitions by Adani Cement

• June 2024: Acquired Penna Cement (Hyderabad-based) for ₹10,422 crore, adding 14 MTPA capacity

• December 2023: Acquired Sanghi Industries Ltd (Saurashtra-based) for ₹5,185 crore

• OCL Acquisition: Adds 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity, with scope to increase clinker by 6.0 MTPA and cement by 8.1 MTPA

How It All Started: Adani’s Cement Entry

The Adani Group ventured into the cement sector in September 2022 after acquiring controlling stakes in Ambuja Cements and ACC Ltd from Swiss cement giant Holcim for USD 6.4 billion (₹51,000 crore). Ambuja Cement currently holds a 51% stake in ACC Ltd.

Subsequently, the group launched a ₹31,000 crore open offer to acquire an additional 26% stake from public shareholders.

Cement Industry Outlook: Adani vs UltraTech

The Indian cement industry is currently led by UltraTech Cement Ltd, the flagship cement arm of the Aditya Birla Group, with a consolidated capacity of 183.06 MTPA.

Kumar Mangalam Birla, the chairman of UltraTech Cement, now faces mounting competition as Adani's aggressive consolidation strategy edges closer to UltraTech’s market dominance.

Conclusion: What This Means for the Cement Sector

The strategic acquisition of Orient Cement by Ambuja Cements marks another significant milestone in Gautam Adani’s aggressive expansion plan in the Indian cement industry. With this move, the Adani Group strengthens its position as a major force, directly challenging the dominance of Kumar Mangalam Birla’s UltraTech Cement.

By steadily acquiring regional players like Penna Cement and Sanghi Industries, the Adani Group is not only increasing its production capacity but also expanding its geographical footprint across key markets. The fresh leadership at Orient Cement, under the new promoter group, signifies a new chapter aimed at accelerating growth and operational efficiency.

As the Adani Group targets a 140 MTPA capacity by FY28, competition in the Indian cement sector is expected to intensify, benefiting customers with better supply chains and potentially competitive pricing. Meanwhile, industry leaders like UltraTech must recalibrate their strategies to defend their market share amidst this fierce new rivalry.