Sajjan Jindal-led JSW Cement has entered the competition to acquire a promoter stake in Orient Cement from the CK Birla Group, according to media reports. This move comes amidst a wave of consolidation in the cement sector, with major players like the Aditya Birla and Adani groups also vying for key assets across India.
Orient Cement, which operates with an 8.5 million tons per annum capacity, is a significant player in markets including Maharashtra, Karnataka, Telangana, and Madhya Pradesh. The CK Birla Group, holding a 37.9 per cent stake in the company, is reportedly looking to sell at a premium price, attracting interest from several major cement companies.
UltraTech Cement, part of the Aditya Birla Group, is currently in advanced discussions with CK Birla, having offered a price range of Rs 350-375 per share. This offer translates to an enterprise value of Rs 7,300-7,800 crore, significantly boosting UltraTech’s presence in southern and western India if successful.
Meanwhile, the Adani Group, which has already expanded its cement capacity significantly through recent acquisitions, is also reported to have shown interest in Orient Cement. However, valuation disagreements and environmental clearance issues have stalled progress in their negotiations.
With JSW Cement now entering the fray, the competition to acquire Orient Cement intensifies, highlighting the strategic importance of this asset in the rapidly consolidating cement industry. The outcome of these acquisition talks is expected to significantly alter the competitive landscape in the sector.
