The Big Squeeze: How Adani Cemented Its Place In India's Market With A $10.5 Billion Deal

The Adani Group, a major Indian conglomerate, made a bold move in May 2022 by announcing the acquisition of Ambuja Cements Limited and its subsidiary ACC Limited from the Swiss cement giant Holcim Group. This deal, valued at a staggering $10.5 billion (Rs. 80,350 crore), transformed the Indian cement industry landscape.

Ambuja Cements, with a revenue of ₹13,451 crore and a profit of ₹3,492 crore in FY 2021, boasted a market capitalization of ₹72,000 crore. Its subsidiary, ACC Limited, mirrored similar success with a revenue of ₹18,800 crore, a profit of ₹4,100 crore, and a market capitalization of ₹70,000 crore in FY 2021. However, ACC also carried a higher debt burden of ₹12,100 crore compared to Ambuja's ₹7,036 crore.