CEMENT INDUSTRY CONSOLIDATION
Cement sector sees marginal growth of 2-3 pc in Q1FY25: Icra
The cement sector experienced a modest 2-3 per cent growth in Q1 due to a slowdown in construction during the Lok Sabha polls, but FY2024-25 is expected to see a 7-8 per cent increase driven by infrastructure and housing demand. Top players are set to consolidate, expanding capacity and improving operating profits by 1-3 per cent from softened raw materials prices. Cement makers are also increasing green power usage to reduce emissions by 15-17 per cent in the coming years.
Orient Cement shares zoom over 5% amid UltraTech’s plans of acquisition
UltraTech, led by Kumar Mangalam Birla, is in advanced talks to acquire Orient Cement from CK Birla for Rs 350-375 per share to counter Adani Cement, following a 23% stake in India Cements. Valued at Rs 6,417.51 crore or $109-110 per ton, Orient Cement's acquisition might finalize by July 19, pending Telangana expansion contingency.
Kumar Birla re-enters race to buy Orient Cement to consolidate Ultratech's Southern push
Talks between CK Birla and Adani said to be at standstill over valuation, mining clearances. Orient stock up 45% in last 1 month.
Ambuja Cements shares down 0.11% as Nifty gains
A total of 69,001 shares changed hands on the counter till 02:00PM (IST).
Expect 8-10% industry volume growth for FY-25: Mohan Bangur, Shree Cement
So, in the next three quarters, the demand has to meet around 9% to 10% to make up for the lost time. In the first quarter, there were elections, there were water shortage, uncertainty of election results were there, now all those is over.
Amnish Aggarwal on 2 top cement large-cap stocks to bet on; best buy in auto
“Mahindra & Mahindra continues to be an exception where the volume growth continues to be good, both in UVs as well as if you look at the tractors, tractors after last year's decline are turning to be positive, although the valuations are rich, if a double-digit volume growth in the PV business continues, M&M can still do well from the current levels.”
- Go To Page 1
UltraTech's India Cements stake buy a win-win for both. Here's what analyst said on industry consolidation
UltraTech Cement's Rs 1,885 crore stake purchase in India Cements is expected to be mutually beneficial for both companies and would consolidate its position in South India at a time when the Adani Group's acquisitive spree is intensifying competition between the two players.
Consolidation push to continue as key raw material gets scarce: 11 small cap cement stocks which fit the bill and may see some action
In less than a month, two cement majors clearly showed their intent. The intent is to grow through an inorganic route. One by complete acquisition, the other by taking a large stake in the company. Another common thing, both of them are focussed on the southern part of India, where the cement companies have a history of being under pressure. So why are they looking toward southern India? The answer lies in something else. It is one of the key raw materials that have become scarce and that is what is leading to a situation where big players clearly know that if they have to grow their capacities they have to pick on companies which have access to that critical raw material. This aggressive consolidation is likely to continue and it is the smaller players which are likely to be targeted.
Shree Cements shares up 0.16% as Sensex rises
A total of 392 shares changed hands on the counter till 11:37AM (IST)
Chakri Lokapriya on stocks to pick in cement, banking sectors
UltraTech is very well positioned. It is still the market leader. Adani on the other hand with ACC and Ambuja, is far more acquisitive. They can move on deals much faster. So, in terms of where will growth come faster from, it will be ACC and Ambuja, says Chakri Lokapriya.
Why cement biggies like to take inorganic route to grow
This was followed by more prominent deals in recent times. In 2022, Adani Group acquired ACC and Ambuja Cements from Holcim. The acquisition of ACC-Ambuja cement assets was valued at ₹81,400 crore.
Birla Group cements lead, Adani plans taking shape
According to industry observers, the competition for leadership in the cement sector is expected to escalate following the Adani group's announcement of ambitious expansion plans. Currently, however, the Kumar Mangalam Birla group appears to have strengthened its position by acquiring a 23% stake in India Cements, thereby increasing its presence in the largest regional market in India, which boasts one of the highest per capita income.
Ambuja Cements board approves merger of Adani Cementation with company
ACL has acquired land to set up 2.5 MTPA (million tonnes per annum) along with captive jetty at Amba River, Raigad (Maharashtra). Besides, it has commissioned 1.30 MTPA cement grinding capacity at Dahej, Gujarat in July 2023, where expansion is in progress for another 1.20 MTPA.
Radhakishan Damani sells 6.91 crore shares of India Cements to UltraTech for Rs 1,914 crore in block deal
The sale was done at an average price of Rs 277 apiece. Through the deal, Damani and his controlled entities bagged around Rs 1,914 crore.
A war of titans builds up in India's cement sector
The UltraTech-India Cements deal comes two weeks after Adani Group unit Ambuja Cement announced acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, adding to its capacity and market share in southern India.
UltraTech to buy 23% stake in India Cements for Rs 1,885 crore
UltraTech Cement approved acquiring a 23% stake in India Cements for Rs 1,885 crore at Rs 267 per share, describing it as a financial investment. The deal, which has been described as a "financial investment" by the Aditya Birla Group company, would be done in cash payment. UltraTech's stock surged 6% to Rs 11,811, and India Cements rose 12.5% to Rs 295.75 on the news.
Be cautious in power stocks; take some money off PSU banks: Nischal Maheshwari
There has been over-exuberance in the power sector. Whether it is the equipment, the supplying company, whether it is the generation guys, all have done well in the last year. So, Centrum Broking's Nischal Maheshwari recommends caution on the whole sector per se and says one should be very stock-specific.
What should investors do with telecom stocks? Sandip Sabharwal answers
So, the best play is Bharti only because that is a pure play which has profits, which has a decent balance sheet, and which has market share and still gaining market share. Vodafone Idea is more about hope. Now the hope is that at some stage they will make profits. I am very doubtful that one, with their current balance sheet, etc, if shareholders will ever get one rupee EPS also from this company.
D-St smashes records yet again: Sensex zooms 621 pts, Nifty scales 23,869 on RIL, ICICI Bank rally
Of the 16 sectoral indices on the NSE, 9 ended in the green with the Nifty Oil & Gas index ending up as the top performing index with 1.4% gains. It was followed by Nifty Private Bank index and Nifty Bank. Among the laggards were Nifty Auto, Nifty Metal and Nifty Consumer Durables which fell up to nearly 1%.
Adani group firm Ambuja Cement bags 24 limestone mines in FY24
Ambuja Cements, a subsidiary of the Adani group, has won 24 bids for new limestone mines with a total resource of 587 million tonnes. The company aims to have a capacity of 140 million tonnes per annum by 2028, with sufficient cash to achieve this through brownfield expansion and acquisitions. The company recently acquired Hyderabad-based Penna Cement, adding 14 MTPA to its capacity to 89 MTPA.
What to expect from largecap private banks going ahead? Sandip Sabharwal answers
So, overall demand-supply outlook over the next couple of years does not look so good because supply increases are very rapid, demand increase has been subdued and companies have been unable to increase prices.
Ambuja Cement's acquisition of Penna will spur sector consolidation: Ronald Siyoni
On the demand front, we have seen the cement demand has improved during May, while the companies have also started to initiate price hikes during May. So, there have been some positive developments.
Ambuja Cements to acquire 100% stake in Penna Cement for Rs 10,422 crore
The acquisition will be fully funded through internal accruals, the filing said. The move is expected to boost Ambuja Cements' growth, said Ajay Kapur, CEO & Whole Time Director. The consolidated turnover of PCIL for the last three years i.e. FY2023-24, FY2022-23 and FY2021-22 is Rs 1241 crore, Rs 2002 crore and Rs 3204 crore, respectively.
Consolidation will drive cement stocks higher this year: Rakesh Arora
Logically, it makes sense, but the reality is that government is unlikely to do that change anytime soon. A lot of revenues earned from cement GST. Also, there is a feeling that the cement industry may not really pass on the benefit of lower GST to the consumer, so that is also one of the another challenges. So, while logically, it makes sense, meaning I am not really expecting it to happen anytime soon at least not in the next 12 months.
Financial health of cement sector to be strong despite market challenges: Ravleen Sethi
Now, cement prices, yes, they have been under pressure and largely the price elusiveness what we believe is here to stay also in medium term.
Cement industry in India consolidating, market shares of top companies growing: ICRA
Large cement companies are expanding capacity through organic growth and acquisitions, driven by strong demand. Market share of the top five firms rose to 54% in 2023 and is expected to reach 55% by 2025. Consolidation, especially in eastern and western regions, enhances cost efficiency. ICRA's outlook for the sector remains stable.
Grasim Q4 revenue at record Rs 37,727 crore
While operating profit of the flagship company of the Aditya Birla Group jumped by a little over a fourth to ₹6,196 crore during the quarter, also an all-time high, the net profit remained flat on year at ₹1,370 crore. Adjusted for an exceptional item charge of ₹538 crore, the bottomline rose by two-fifths on year.
India Cements Q4 Results: Net loss narrows to Rs 50.06 crore
The cement and clinker volume for the fourth quarter was 24.36 lakh tonne as compared to 27.85 lakh tonne in the same period of the previous year, it added.
Lot of consolidation happening in cement industry at a faster pace: HM Bangur, Shree Cement
In organic expansion the biggest thing is you do not buy whatever is left out. You create something. Number one, it is good for the local area because something new is coming up and somebody has to put the new unit. In European countries this is the way because their capacity need is over, it is only changing hands.
Load More
