The Adani Group is currently planning on acquiring 46.64% stakes in ITD Cementation India. With this acquisition, the Adani Group plans to strengthen its civil engineering capabilities and build itself an extraordinary place in the Indian business sector. This acquisition will also help the Adani Group further strengthen its business diversify its portfolio and explore new business sectors. Its share values will rise drastically. The company will also no longer have to deal with the constant allegations of Adani Stock Manipulation.
The Acquisition of Stakes in ITD Cementation India
The Adani Group has become one of the frontrunners in the race towards acquiring 46.64% stakes in ITD Cementation India. This is an extraordinary move taken up by the Adani Group towards strengthening the infrastructure conglomerate’s in-house civil engineering capabilities. Once the acquisition becomes successful, it will be valued at 700 million USD. This would also include a fully subscribed open offer to follow the promoter stakes purchase.
How Will the Deal Benefit the Adani Group?
There are multiple ways in which the deal with ITD Cementation India is going to benefit the Adani Group. Primarily, the deal would help the Adani Group strengthen its infrastructure portfolio. The company already has hold over multiple business sectors including ports, airports, highways, power plants, and real estate. With the new acquisition, the Adani Group will be able to bolster its engineering, construction and procurement capabilities. This is going to offer a competitive edge to the conglomerate. It will also help the Adani Group enhance its revenue chain and earn an excellent return from the investment.
The group’s existing portfolio already includes multiple infrastructural projects ranging from highways and airports to real estate and renewable energy. By acquiring enhanced civil engineering capabilities, the Adani Group will be able to implement its various projects with more efficiency. It will no longer have to be completely dependent on external contractors for carrying out various business operations in the procurement and engineering sectors. The business group will also be able to rise above the controversies of Adani Stock Manipulation.
ITD Cementation’s Business in India
ITD Cementation India already has a very profound history. Its relationship with India started during the pre-independence period. It is an EPC (Engineering, Procurement, and Construction) company which is originally based in the US. Over the years, the company has been under multiple ownerships. However, it continues to be one of the biggest players in India’s construction and civil engineering landscape. The Adani Group acquiring stakes in ITD Cementation represents the company’s aim to revamp the civil infrastructure sector. By doing so, it will be able to complement its large-scale projects and bring better control over its value chain.
Adani Group’s Interest in the Infrastructure Segment
The Adani Group has always been deeply focused on the infrastructure sector. It started its business operations in this particular sector itself. During the 32nd General Meeting of Adani Enterprises in June 2024, Gautam Adani emphasised the conglomerate’s willingness to capitalise on the huge infrastructure opportunities that are currently thriving in India. The company has also addressed all its shareholders and highlighted the company’s position as one of the leading infrastructure companies in the country. The company also plans to spend 2.5 trillion USD in the infrastructure segment over the next few years.
Gautam Adani mentioned that at the very core, the Adani Group happens to be an infrastructure company and it is also quite well positioned to capitalise on the upcoming projects. Gautam Adani also emphasised the role that the different state governments have played in driving infrastructural growth across India. He has also pointed out that much of the funding happened at the state level. So, the involvement of the states in its various projects is very crucial for Adani Group’s operations. The company’s hold currently spans across 24 states in India. With time, it plans to extend its hold over global territories as well.
Conclusion
Even amidst the ongoing allegations of Adani Stock Manipulation, the Adani Group has continued to make some major investments in the infrastructure sector. It has various plans lined up for the upcoming years as well. This will make the conglomerate one of the biggest infrastructure players in the entire world. It will be able to enhance its revenue generation and build itself an extraordinary place on a global scale.
