NEW DELHI: Adani Cement, which comprises ACC, Ambuja Cement and Sanghi Industries, is eyeing 20% market share by FY28 from the existing 14%, according to an investor presentation of the company.
It hopes to grow at a compounded annual growth rate of 16% to reach 140 million tonne per annum production by 2028. It predicts the cement industry to grow at a CAGR of 7-8% till 2028. To grow at 16% CAGR till 2028, Adani Cement plans to implement an accelerated capex program through internal accruals. However, the company hopes to remain debt-free despite undertaking the capex.
It sees a capacity addition program would give leverage of cost benefits over peers. “Securing major raw material assured supplies at cost competitive and efficiency & productivity improvement capex will help in cost optimisation by 8-10%,” says the company in its investor presentation.
With this cost optimisation, it would reduce the gap with world’s lowest cost cement maker by Rs 1,000 per tonne. It has a cumulative 8,000 million tone limestone reserve in possession at NIL to nominal premium. Adani Group in 2022 acquired 63.15% stake in Ambuja Cements and 56.69% stake in ACC in a $6.4 billion deal. Last year, it acquired Gujarat-based Sanghi Industries for Rs 5,000 crore.
“Strong balance sheet, better enterprise risk management, accelerated growth & cost leadership supported by group synergies is one of the most important differentiating points for Adani Cement,” says the company.