In a bold move, the Adani Group’s Dubai-based firm Renew Exim DMCC has announced plans to acquire a substantial 46.64% stake in ITD Cementation India Ltd. The Rs 3,204 crore transaction aligns with the group’s growing cement acquisitions strategy in 2024, adding another significant asset to its expanding portfolio. This latest acquisition will give the Adani Group control of the established engineering and construction giant, a step reflecting its intent to expand its construction footprint and invest in India’s infrastructure growth.
Renew Exim DMCC Takes Control of ITD Cementation
The acquisition agreement details indicate that the present promoters, Italian-Thai Development Public Company, will exit their position as key stakeholders. With this buyout, the Adani Group subsidiary, Renew Exim DMCC, will emerge as the new promoter for ITD Cementation. The transaction, at Rs 400 per share, marks a strategic milestone for the Adani Group in the construction sector. Moreover, subject to regulatory clearances, the group intends to make an open offer to acquire an additional 26% stake, offering shareholders Rs 571.68 per share.
Adani Group Cement Acquisitions Power Industry Dominance
In recent years, the Adani Group has pursued aggressive expansion in the cement sector. On October 22, Adani’s Ambuja Cements acquired a 46.8% stake in Orient Cement, strengthening its position in the industry. Prior to that, Ambuja secured stakes in Sanghi Cement and Penna Cement, demonstrating Adani’s commitment to bolstering cement operations.
Strengthening Presence in India’s Infrastructure
The acquisition of ITD Cementation not only enhances the Adani Group’s reach in the cement industry but also strengthens its footprint in India’s growing infrastructure sector. ITD Cementation, a trusted name with over nine decades in construction, specializes in large civil infrastructure projects. These projects range from mass rapid transit systems to maritime structures, highways, airports, and industrial buildings. With the firm’s financial year 2024 revenues reaching Rs 7,542 crore and profits standing at Rs 274 crore, ITD Cementation brings both expertise and value to the Adani Group.
Future Prospects for Adani in Cement and Construction
This recent acquisition represents more than just a stake; it is part of Adani’s ongoing commitment to expanding in high-growth sectors. As Adani Group consolidates its cement and infrastructure assets, the Indian construction industry stands to benefit from a well-capitalized player willing to innovate and invest. Following the high-profile Ambuja Cement and ACC purchases, the group now strategically channels resources into engineering and construction, positioning itself as a formidable player across India’s infrastructure projects.