In 2024, India’s cement sector witnessed a significant rise in mergers and acquisitions, with more than ten deals announced, the highest since 2014. These transactions totaled over $3.5 billion, with major players like UltraTech Cement and Adani-backed Ambuja Cements leading the charge, especially in the South Indian region. This wave of consolidation has resulted in greater concentration of cement assets, now dominated by the top four companies: UltraTech, Ambuja, Shree Cement, and Dalmia Bharat.
Despite the surge in mergers, cement prices remain under pressure. Factors such as sluggish demand driven by elections and the monsoon season have made it difficult for companies to implement price increases.
Since April 2014, nearly 204 million tonnes of cement capacity have been transferred, with 125 million tonnes changing hands between FY23 and November 2024. According to analysts from Nuvama, cement prices may have bottomed out but will likely see minimal increases due to fierce competition. They project a modest growth in volume of 4-5% for FY25, a slowdown compared to the 9% growth in FY24. The southern cement market continues to be a key area for consolidation, as it remains more fragmented than other regions, offering opportunities for the acquisition of mid-sized and smaller assets.
