Adani Group eyes 46.64% stake acquisition in ITD Cementation India

The Adani Group has emerged as the frontrunner to acquire a 46.64 per cent promoter stake in ITD Cementation India, a move that is expected to bolster the infrastructure conglomerate’s in-house civil engineering expertise, according to a report by the Economic Times. If the acquisition goes through, it will be valued at Rs 5,888.57 crore (approximately $700 million), which includes a fully subscribed open offer to follow the promoter stake purchase.

The deal would strengthen Adani Group’s infrastructure portfolio, which already covers many sectors, including airports, highways, ports, power plants, and real estate. With this acquisition, the group would further enhance its engineering, procurement, and construction (EPC) capabilities, giving it a competitive edge in its ongoing projects. Both sides reportedly reached an agreement earlier this week, and a formal announcement is expected soon, according to the Economic Times.

However, Business Standard was not able to independently verify these reports.

ITD Cementation India

ITD Cementation India has a rich legacy that dates back to pre-independence India. It is an EPC (Engineering, Procurement, and Construction) company originally based in the UK. Over the years, the company has changed ownership multiple times, but it continues to be a prominent player in India’s civil engineering and construction landscape.

For the Adani Group, acquiring a major stake in ITD Cementation represents a strategic expansion in civil infrastructure, complementing its current focus on large-scale projects. The group’s existing portfolio includes an array of infrastructure projects ranging from airports and highways to renewable energy and real estate. By incorporating ITD Cementation’s engineering capabilities, Adani can potentially execute its projects more efficiently and reduce reliance on external contractors.

The acquisition of ITD Cementation is consistent with the group’s aggressive growth strategy. Adani has been rapidly expanding its presence across various sectors, particularly in cement and infrastructure, through both organic and inorganic means.

Adani Group to focus on infrastructure projects

At the 32nd Annual General Meeting of Adani Enterprises in June, Chairman Gautam Adani emphasised the group’s readiness to capitalise on the massive infrastructure opportunities emerging in India. Addressing shareholders via video conference, Adani said the company’s position as a leading infrastructure player, uniquely positioned it to benefit from the country’s projected $2.5 trillion infrastructure spend.

“At the very core, we are an infrastructure company and are well-positioned to capitalise on the upcoming opportunities,” Adani said. He emphasised the significant role that state governments play in driving infrastructure growth across India, pointing out that much of the funding and action happen at the state level. "While the national narrative sets the stage for infrastructure spend, large parts of the funding and action are at the state level,” he said.

The Adani Group’s vast operations span 24 states in India, making it a key player in implementing infrastructure initiatives.