Adani Group's Renew Exim DMCC Receives CCI Approval to Acquire Majority Stake in ITD Cementation

The Competition Commission of India has given its nod to Adani Group's subsidiary, Renew Exim DMCC, to acquire a significant stake in ITD Cementation India. This acquisition, valued at approximately Rs 5,757 crore, involves acquiring 46.64% of the company's shares. ITD Cementation India is known for its work in heavy civil and infrastructure projects both domestically and internationally.

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Renew Exim DMCC, based in Dubai and part of the Adani Group, focuses on investments and management but lacks operations within India. The company plans to acquire 8,01,13,180 shares of ITD Cementation India. This move is part of a broader strategy to strengthen its presence in the engineering and construction sector.

Adani Group's Strategic Expansion

In October 2024, Renew Exim DMCC revealed an agreement to purchase a 46.64% stake in ITD Cementation India from its promoters for Rs 3,204 crore. Additionally, an open offer was launched to acquire another 26% stake from public shareholders for Rs 2,553 crore if fully subscribed. This would bring Renew Exim's total stake to 72.64%.

The acquisition aligns with Adani Group's rapid expansion in the cement industry. In 2022, the conglomerate acquired Holcim's Indian assets, becoming the second-largest cement producer in the country. This strategic move has intensified competition within the industry.

Open Offer Details

Under SEBI's SAST regulations, Renew Exim DMCC initiated an open offer for an additional 26% of ITD Cementation India's shares. This offer involves acquiring up to 4,46,64,772 fully paid-up equity shares with a face value of Re 1 each. The open offer aims to consolidate Adani's position in the engineering and construction sector.

Adani Group's aggressive expansion strategy also includes acquiring Hyderabad-based Penna Cement for Rs 10,422 crore in June 2024. Following this, they announced plans to acquire CK Birla group firm Orient Cement for Rs 8,100 crore as part of their growth initiative.

Competitive Landscape

The group's expansion has led to increased competition with Kumar Mangalam Birla's UltraTech Cement. UltraTech remains the market leader with an annual production capacity exceeding 150 million tonnes. The rivalry between these industry giants continues to shape the cement market landscape in India.

Adani Group's strategic acquisitions highlight its commitment to strengthening its foothold in the cement industry. By acquiring stakes in prominent companies like ITD Cementation India and others, Adani aims to enhance its market position and drive growth across various sectors.