JSW Cement, led by Sajjan Jindal, is considering acquiring the promoter stake in Orient Cement Ltd (OCL) from CK Birla, according to a recent report. This move comes amid a flurry of consolidation in the cement sector, where major players like Aditya Birla (UltraTech Cement’s parent company) and the Adani Group have been actively acquiring assets nationwide.
Negotiations between Adani and UltraTech have stalled due to valuation disputes and environmental clearances for critical limestone mines, creating an opening for JSW Cement to step in.
UltraTech Cement and Adani’s cement division, which includes ACC and Ambuja Cement, are the two largest cement producers in India by capacity. Recent deals include Adani’s acquisition of Penna Cement and UltraTech’s majority stake in India Cements.
JSW Cement’s potential interest in OCL, which has a capacity of 8.5 million tons per annum (MTPA), introduces a new competitor into the mix. Aditya Birla and Adani have been in talks with CK Birla since late last year, when JP Morgan began facilitating the sale. This mirrors the high-stakes competition of 2022 for Holcim’s India assets, which Adani acquired for $6.5 billion, positioning itself as the second-largest player in the country’s building-materials sector.
OCL’s manufacturing units are located in Telangana, Maharashtra, and Karnataka, supplying to 11 states across Central, Western, and Southern India. A significant portion of its sales comes from Maharashtra and Telangana. The company plans to invest Rs 1,000 crore in capital expenditure for the current fiscal year, focusing on expansions in Telangana and Karnataka. (Source The Business Standard)