Southward Expansion: UltraTech Cement Acquires Stake in India Cements
The Indian cement industry is witnessing a shift towards the southern states, with major players like UltraTech Cement making strategic moves to strengthen their presence in the region. The recent acquisition of a 23% stake in Chennai-based India Cements by UltraTech Cement is a clear indication of the growing importance of the southern market.
With housing and infrastructure development projects on the rise in states like Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana, the demand for cement is expected to soar. The south Indian states currently have a total installed capacity of about 184 MTPA, with a production share of 33%, making it a lucrative market for cement manufacturers.
The economic rebound in neighbouring Sri Lanka is also opening up new opportunities for cement exports from the southern states. This, coupled with the increasing infrastructure projects like roadways, metro rails, airports, and industrial sectors, is making the south a hot destination for cement companies.
UltraTech Cement’s recent acquisition of India Cements will not only strengthen its foothold in the southern market but also add another 10.75 million tonne capacity to its total production capacity. Other major players like Ambuja Cement, Shree Cement, and Dalmia Bharat are also making strategic moves to expand their presence in the region.
Ambuja Cement’s acquisition of My Home Group’s cement grinding unit in Tamil Nadu and the agreement to acquire Penna Cement Industries are clear indicators of the growing interest in the southern market. Shree Cement’s capacity expansion in Karnataka and Dalmia Bharat’s new cement mill in Tamil Nadu further highlight the potential of the southern states for cement manufacturers.
Overall, the compass for Indian cement manufacturers is indeed pointing southward, with the southern states emerging as key growth drivers for the industry. With major players making strategic investments and expansions in the region, the future looks promising for the cement sector in India.
