Birla's UltraTech buys stake in rival to defend Indian cement lead against Adani

Hritam Mukherjee
Updated ·2-min read
A man cleans an Expert Testing Van of UltraTech Cement outside a cement store in Ahmedabad

By Hritam Mukherjee

BENGALURU (Reuters) -UltraTech Cement said it is buying a stake worth up to $228 million in rival India Cements, intensifying a battle with the Adani group which is challenging its position as the South Asian nation's top cement maker.

India's cement market, expected to roughly double to $49.24 billion by 2029 from 2022 levels, was long dominated by billionaire Kumar Mangalam Birla's company until Gautam Adani entered the sector in 2022 and quickly rose through the ranks to become the second biggest player.

The deal for a 23% stake, which UltraTech said is a non-controlling financial investment, comes as cement makers stand to benefit from Narendra Modi's return to power and an expected infrastructure spending spurt in Asia's No. 3 economy.

The investment in Chennai-based India Cements will help UltraTech guard its turf in the country's southern markets, at a time when Adani firms are attempting to boost their hold in the region.

Between November and June, UltraTech and Adani's Ambuja have added heft to their own southern holds by signing deals with Kesoram Industries and Penna Cement Industries respectively.

As of end-March, UltraTech had an 11% market share in the region, with the Adani group having a 6% share, an industry estimate showed.

"It is becoming clearer that larger incumbents are vying for a slice of the pie in South India," said Choice Broking's Ashutosh Murarka.

The Adani group was known for its aggressive expansion strategies across sectors, including deals at NDTV, Ambuja and ACC, before falling prey to a damning report from a U.S. short seller early last year.

The group has subsequently bounced back and has also resumed making acquisitions.

Broadcaster NDTV reported that UltraTech is buying the stake mainly from investor Radhakishan Damani and his associated entities, who together hold a 20.78% stake in India Cements.

UltraTech and Damani, who is also the founder of India's top retail chain DMart, did not immediately respond to Reuters' requests for comments.

India Cements' shares jumped 14% on Thursday after the news, while UltraTech's shares rose nearly 7% to hit a record high.

($1 = 83.5050 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Savio D'Souza and Muralikumar Anantharaman)

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • 4 Singapore Stocks Paying Out Dividends in July

    We feature four Singapore stocks that are doling out dividends in July. The post 4 Singapore Stocks Paying Out Dividends in July appeared first on The Smart Investor.

  • Three SGX Stocks Estimated To Trade At Discounts Between 42.5% And 45.3%

    As the global financial landscape evolves, Singapore's market is uniquely positioned to capitalize on emerging trends such as the tokenisation of trade finance assets. This shift towards digital assets highlights a broader transformation in investment opportunities and market dynamics. In this context, identifying stocks that are potentially undervalued becomes crucial, as they may offer significant growth potential amidst these transformative economic conditions.

  • 3 Singapore REITs That Announced Divestments Recently: Should Income Investors Pay Attention?

    We profile three Singapore REITs that sold properties recently and assess how such moves will impact the REIT’s asset base and distribution per unit. The post 3 Singapore REITs That Announced Divestments Recently: Should Income Investors Pay Attention? appeared first on The Smart Investor.

  • Alibaba Stock Has Languished While Tencent Has Soared. One Reason Why.

    Shares in Tencent, like much of the rest of Chinese tech, have been slammed since Beijing began a crackdown on technology companies in late 2020.

  • This Stock Is Beating Nvidia—and It’s Set to Climb Even More

    Abercrombie & Fitch’s stock has smoked Nvidia’s in the past year. A strategic makeover under CEO Fran Horowitz is winning fans on Wall Street and Main.

  • Unveiling 3 SGX Dividend Stocks With Yields Ranging From 6% To 9%

    As the Singapore market navigates the burgeoning field of tokenised real-world assets, with projections pointing to significant growth in trade finance assets, investors are keenly observing opportunities that align with these evolving trends. In this dynamic environment, dividend stocks that offer stability and consistent returns are particularly appealing, providing a contrast to the nascent and rapidly evolving sector of tokenised assets.

  • Warren Buffett donates again to the Gates Foundation but will cut the charity off after his death

    Investor Warren Buffett announced another $5.3 billion in charitable gifts Friday, but in a major shift of his longtime giving plan he said he plans to cut off donations to the Bill & Melinda Gates Foundation after his death and let his three children decide how to distribute the rest of his $128 billion fortune. Buffett laid out his new plan for his estate in an interview with the Wall Street Journal. The 93-year-old billionaire who leads Berkshire Hathaway didn't immediately respond to questions from The Associated Press on Friday about his plan that calls for Howard, Susie and Peter Buffett to unanimously agree where to give his Berkshire Hathaway stock after his death.

  • New inflation reading offers hope for Fed rate cuts later this year

    The Fed got another positive signal that inflation is easing after running hotter-than-expected in the first quarter, but the central bank still likely needs more time before cuts can begin in 2024.

  • Unveiling Three Stocks That May Be Trading Below Their Estimated Intrinsic Value

    As global markets demonstrate resilience, with the S&P 500 reaching new highs and value stocks showing strength, investors may find opportunities in stocks that appear undervalued relative to their intrinsic worth. In this context, identifying stocks trading below their estimated intrinsic value could be particularly timely, offering potential for appreciation as market conditions evolve.

  • Singapore Post Full Year 2024 Earnings: EPS Beats Expectations

    Singapore Post ( SGX:S08 ) Full Year 2024 Results Key Financial Results Revenue: S$1.69b (down 9.9% from FY 2023). Net...

  • Top Stock Market Highlights of the Week: Amazon, Hongkong Land and Valuetronics

    An e-commerce behemoth hits a new market capitalisation milestone while a reputable property owner and developer carries a billion-dollar property revamp. The post Top Stock Market Highlights of the Week: Amazon, Hongkong Land and Valuetronics appeared first on The Smart Investor.

  • Here is What to Know Beyond Why Sea Limited Sponsored ADR (SE) is a Trending Stock

    Zacks.com users have recently been watching Sea Limited (SE) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

  • Stock market today: AI frenzy leads stocks to rip-roaring first half of 2024

    Investors are watching for a cooling in the Fed-favored PCE print to boost rate-cut hopes as they assess Biden's faltering performance in the Trump debate.

  • Global stocks mixed as elections heat up

    Equity markets were mixed Friday as investors assessed fallout from a bumpy US presidential debate and looked ahead to weekend elections in France that could boost the far right."We don't think Biden's disastrous performance at last night's debate will have a material impact on markets in the short term," said Kathleen Brooks, research director at XTB. "The election is still many months away and a lot could change."

  • Campbell Soup Stock Has Struggled. Can Rao’s Save It?

    The venerable soup maker has diversified through dealmaking, but after a pandemic rally, shares have struggled. Now the hope is a high-priced brand from a hot New York restaurant. Plus: Can cruising bail out Disney?

  • Why It Could Be a Cruel Summer for Stocks

    THE TRADER The stock market has been hitting new highs, but most stocks are struggling. Even news that would usually move them isn’t doing the trick, a sign that equities won’t be an exciting place to invest in a while.

  • 5 Ways To Fight Inflation That Actually Work — And 5 That Don’t

    If you've seen yourself paying a hefty bill at the grocery store or tried to fill your tank, only to get a fraction of what you once paid for, you've likely noticed that many of these costs have...

  • Don't Buy Tiger Brands Limited (JSE:TBS) For Its Next Dividend Without Doing These Checks

    Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...

  • I’m a Banking Expert: 4 Reasons To Take Out a Loan From Your Bank (And 2 Reasons To Go Elsewhere)

    Planning to make a major purchase like buying a home or a new car? Chances are pretty good that if you don't have enough money saved to cover the cost, you're visiting your bank to discuss taking out...

  • GameStop Stock Rises After Roaring Kitty Returns to Social Media

    GameStop shares snapped out of a recent funk on Thursday with momentum carrying into Friday as the most high-profile proponent of the stock returned to social media for the first time in more than a week. The influence of Keith Gill, known as Roaring Kitty on social media, is not to be underestimated. GameStop stock advanced 3.7% on Thursday after starting in the red, with the shares up 0.6% on Friday.