The Competition Commission of India (CCI) has approved the proposed acquisition of up to 72.8 per cent shareholding in Orient Cement Ltd by Ambuja Cements Ltd, marking a significant consolidation move in the Indian cement sector.

With this acquisition, Ambuja aims to strengthen its market presence by adding Orient Cement’s three manufacturing facilities in Telangana, Karnataka and Maharashtra to its portfolio. These facilities serve 10 States, ensuring a stronger regional footprint.

Ambuja Cements, a leading player in India’s cement industry, currently operates 22 integrated cement plants, 10 bulk cement terminals, and 21 grinding units across the country. 

Transaction Details

The acquisition will take place in two steps. In the initial first phase, Ambuja Cements will acquire 46.8 per cent of Orient Cement’s share capital, including 37.9 per cent from the existing promoter group and 8.9 per cent from certain public shareholders.

Under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations (2011), this triggers an open offer for an additional 26 percent stake. If fully accepted, Ambuja’s total holding will reach 72.8 percent, giving it majority control.

Impact on the Cement Industry

This acquisition signals further consolidation in India’s highly competitive cement industry, which has seen a series of high-value mergers and acquisitions in recent years. With Orient Cement’s production capacity added to its network, Ambuja Cements will significantly enhance its market share, operational efficiency, and distribution reach.

The deal is also expected to trigger operational synergies, cost optimizations, and enhanced supply chain efficiencies for Ambuja Cements. Moreover, with India’s construction and infrastructure sectors witnessing sustained growth, cement demand is projected to rise, making this acquisition strategically crucial.

Adani Infra’s stake buy of PSP Projects 

In another major development in India’s infrastructure and construction sector, the Competition Commission of India (CCI) has approved Adani Infra (India) Limited’s acquisition of equity shares in PSP Projects Ltd. 

Adani Infra proposes to purchase a 30.07 percent stake in Gujarat-based construction firm PSP Projects for ₹ 685 crore. This stake buy will be followed up with an open offer to public shareholders.

The transaction involves an initial acquisition of shares from PSP’s promoter, Prahaladbhai S. Patel, followed by an open offer to public shareholders. Post-transaction, both Adani Infra and the existing promoters will hold equal shareholding in PSP Projects.

Strategic Expansion for Adani Infra

Adani Infra, a key player in infrastructure development with expertise in engineering, project management, and construction services, is set to strengthen its foothold in the construction and engineering, procurement, and construction (EPC) sectors through this acquisition. The company, known for its work in power generation, transmission, roads, and water projects, will leverage PSP Projects’ expertise to expand its portfolio.

PSP Projects, a well-established EPC company, has made its mark in industrial, institutional, residential, and government projects. With a strong track record of delivering large-scale construction projects across India, including mechanical, electrical, and plumbing (MEP) services, the company is a strategic fit for Adani Infra’s growing infrastructure ambitions.

Implications of the Acquisition

This acquisition signals Adani Infra’s intent to further penetrate India’s fast-growing EPC and construction market. By aligning with PSP Projects, Adani Infra could gain enhanced execution capabilities, expand its service offerings, and tap into both public and private sector projects. The deal also reflects the continued consolidation trend in India’s infrastructure space, where major players are strengthening their market positions through strategic acquisitions.