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Adani Group Aims To Double Cement Capacity Over Next Five Years, Says Gautam Adani

Adani Group will double its cement capacity from 70 million tons to 140 million tons in the next five years, Gautam Adani said.

<div class="paragraphs"><p>Gautam Adani. (Source: Adani Group)</p></div>
Gautam Adani. (Source: Adani Group)

Adani Group aims to double its cement capacity over the next five years, tapping into the vast potential for cement demand in the country, Chairman Gautam Adani said.

“We anticipate going from the current 70 million tons capacity to 140 million tons in the next five years," Adani said, while speaking at The Trident in Mumbai on Sept. 17.  “Needless to say, a large part of my confidence comes from the combined strength of the leadership we are getting from ACC and Ambuja.”

Adani Group has completed the acquisition of ACC Ltd. via Ambuja Cements Ltd. and appointed Adani's son—Karan Adani—to oversee the business.

Adani highlighted that India’s per capita consumption of cement is just 250 kg when compared with China’s 1,600 kg. The long-term average growth in cement demand is expected to be 1.2-1.5 times the GDP as several government programmes have gathered momentum, Adani said, adding that cement is an attractive adjacency to its infrastructure business.

These adjacencies, he said, gives the group a "significant competitive advantage" and puts it in a position to gain unmatched scale.

The group also expects its operational efficiency to drive margin expansion, thus taking the conglomerate to become the most profitable cement maker in the country.

Apart from being the second-largest cement producer in India, Adani said the group is the world's largest solar power company, while it is also leading the global green hydrogen story with a commitment of $70 billion (Rs 5.57 lakh crore) to this business.

The group is also the largest airport operator in India with 25% of passenger traffic and 40% of air cargo, Adani said. The group, he said, is the largest ports and logistics company in India with a 30% market share.

Watch the full speech here

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.