Big Deal: Deep dive on what's in-store for cement sector
This latest episode of, ‘Big Deal’, deep dives on what's in store in the cement landscape in the country as it gears up for a complete overhaul in the next few years. CNBC-TV18’s Nisha Poddar spoke to Jigar Mistry, Co-founder of Buoyant Capital; Anil Singhvi, Executive Chairman at Shree Digvijay Cement; and Mangesh Bhadang, Research Analyst at Nirmal Bang Instl Equities.
One sector which has been and continues to be most active in mergers and acquisitions (M&A) is the cement sector. Adani Group's entry into the cement industry with the mammoth acquisition of Ambuja Cements and ACC is a big disruption in the sector and will continue to fuel the deal space as more consolidation picks up.
Birla-led UltraTech cement, Adani with aspirations to become number one, and JSW Group's ambitions in the same space is likely to create immense M&A action.
This latest episode of, ‘Big Deal’, deep dives into what's in store in the cement landscape in the country as it gears up for a complete overhaul in the next few years. CNBC-TV18's Nisha Poddar spoke to Jigar Mistry, co-founder of Buoyant Capital; Anil Singhvi, executive chairman at Shree Digvijay Cement and Mangesh Bhadang, research analyst at Nirmal Bang Instl Equities.
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Singhvi said the cement industry looked very lackluster, really not having many deals and all that. With the entry of Adani, the whole landscape is going to change in a big way.
"I am recollecting my old days at Ambuja where we are of the very fast movers in the industry. Looking at consolidation way back in the late 90s and early 2000, I think they are able to repeat a similar kind of trend now for the next five years. So to me, I think this one change of ownership from Holcim to Adani is a big titanic shift which is going to be there in the cement industry," he added.
Bhadang said, "Our view on the sector is basically, if the Adani Group goes through an inorganic route for this said expansion, at least up to 50 percent of their total capex plans then it would not have a very severe impact on the demand-supply dynamics. If they are not able to garner that share through acquisition, then definitely the supply in the market will be relatively on the higher side."
Watch the video for more.
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