Adani Cement Industries, the latest addition to Gautam Adani-founded Adani Group will manufacture most types of cement by utilising fly ash generated at its coal-fired power stations
With large infra projects resuming operations, India’s cement consumption is all set to grow by 7-10 per cent. Avishek Kumar, Managing Director, Protiviti Member Firm for the India Region, said that the demand will mainly come from rural and semi-urban areas. This can be attributed to the host of initiatives led by the government such as MGNREGA, PMAY-U and more.
Tapping into this potentially lucrative market is the Gautam Adani-led Adani Group, which recently forayed into the cement business. The newly instituted Adani Cement Industries Ltd (ACIL), which is an extension of Adani’s power business, will manufacture almost all types of cement.
This may lead to a stiff competition between ACIL and its established counterparts in the cement industry, such as UltraTech Cement Ltd, Ambuja, Dalmia and more.
Commendably, the subsidiary of the Gautam Adani Group will reuse the fly ash generated at its coal-fired stations for manufacturing cement, concrete, concrete products, cellular concrete products, bricks etc.
Similar measure is also being undertaken by Vedanta Aluminium and Power Business. It not only utilises fly ash for cement and brick manufacturing, but also for backfilling of mine void, among others. This is part of the company’s approach to reducing carbon footprint.
Concrete production contributes almost 8 per cent of all the greenhouse gases produced in the world. Thus, incorporating fly ash in its manufacturing can help in reducing the carbon emissions by up to 90 per cent.
However, this is not the first time that Adani Group has taken the sustainable route. From its coal mine and port projects to power generation and more, sustainability has been an integral part of the group’s ethos.
Currently, the market value of the Gautam Adani-founded Group stands at around Rs 9.5 lakh crore. Considering the possible growth of cement demand over the next few years, industry experts opine that the group’s entry into the cement business may lead to a surge in its market value.