Adani Group Eyes Major Stake in ITD Cementation, Set to Bolster Infrastructure Expertise - Read Here
The Adani Group, one of India’s leading infrastructure conglomerates, is reportedly set to acquire a 46.64% promoter stake in ITD Cementation India, a significant move that would further solidify its position in the civil engineering and construction industry. Valued at ₹5,888.57 crore (approximately $700 million), this acquisition would mark a strategic leap in Adani’s efforts to enhance its in-house engineering, procurement, and construction (EPC) capabilities.
The deal, first reported by The Economic Times, is said to be nearing completion, with both parties having reached an agreement. A formal announcement is expected soon, pending a fully subscribed open offer that would follow the promoter stake purchase.
A Strategic Expansion for Adani Group
For the Adani Group, acquiring a controlling stake in ITD Cementation is more than just a routine business move. It aligns perfectly with its broader ambition to dominate India's infrastructure landscape. The group’s current portfolio already covers key sectors such as airports, highways, ports, power generation, and real estate. The addition of ITD Cementation’s expertise would enable Adani to bring more projects in-house, reducing reliance on third-party contractors and strengthening its ability to manage large-scale civil engineering ventures.
ITD Cementation, with its rich legacy dating back to pre-independence India, has played a pivotal role in shaping the nation’s infrastructure. Originally a UK-based company, it has undergone various ownership changes but remains a key player in India's EPC industry. Its civil engineering capabilities are highly respected and would complement Adani’s expansive infrastructure plans, offering a significant boost to ongoing and future projects.
Adani’s Aggressive Growth Strategy
The acquisition comes as no surprise to those familiar with the Adani Group’s aggressive expansion strategy. Under the leadership of Chairman Gautam Adani, the group has pursued both organic and inorganic growth avenues to establish itself as a dominant force across multiple sectors, particularly cement and infrastructure. The group’s expansion into civil engineering through ITD Cementation aligns with its goal of capitalizing on the growing infrastructure opportunities within India.
During the group’s 32nd Annual General Meeting in June, Gautam Adani highlighted the importance of infrastructure in India’s future, forecasting a massive $2.5 trillion spend in this sector. “At the very core, we are an infrastructure company and are well-positioned to capitalize on the upcoming opportunities,” Adani said. He emphasized that while the national narrative sets the stage for infrastructure growth, much of the funding and action happens at the state level, where Adani has a robust presence across 24 states.
A Future of In-House Civil Engineering Capabilities
With ITD Cementation’s acquisition, the Adani Group will be better equipped to handle large-scale infrastructure projects across sectors. This move will not only help the conglomerate execute projects more efficiently but also provide a competitive edge in an increasingly crowded market.
The acquisition fits perfectly within Adani’s long-term strategy of reducing its dependence on external contractors and bringing more capabilities under its umbrella. As the group continues to expand its influence across India's infrastructure landscape, this deal signifies another milestone in Adani’s quest for dominance.