Adani Changed His Mind | The Valuation School
About this lesson
Adani Group was buying cement companies at a speed India had never seen before. ACC. Ambuja. Sanghi. Penna. And now even Jaiprakash Associates’ cement assets. The goal was ambitious: Build India’s largest cement empire in record time. But now something interesting is happening. After aggressively acquiring capacity, Adani is suddenly selling one of the newly acquired cement companies to Dalmia Cement. Why? Because buying capacity and efficiently operating it are two completely different games. Recent concalls already showed signs of stress: • Penna operating at just ~46% utilization • Sanghi at ~57% utilization • FY27 capacity targets getting pushed to FY30 • Capex plans being trimmed This tells us something important about capital-intensive industries: Growth through acquisitions looks exciting on headlines, but integration and operational efficiency decide whether the strategy actually works. And the timing becomes even more interesting because the entire cement industry is entering a difficult phase: • Demand growth slowing down • Overcapacity concerns rising • Energy and freight costs increasing because of West Asia tensions • Some players slowing expansion while others are doubling down aggressively This is no longer just a story about Adani. It’s becoming a much larger battle for market share, pricing power, and survival in India’s cement sector. As a finance student, this is one industry you should definitely track closely over the next few years. [Adani, Birla, Finance, Stocks, The Valuation School, Parth Verma]
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