South India still ripe for cement mergers, acquisitions, says ratings agency

Nuvoco Vistas

03/07/2024 08:21

** India's southern cement market still offers high potential for
inorganic expansion, followed by the west, says India Ratings &
Research 
    ** Two south India deals in June by market leader UltraTech
Cement  ULTC.NS  and rival Adani Group heats up rivalry in the region
    ** Ratings agency pins consolidation potential on high
fragmentation, presence of several small-to-mid sized players in
these markets
    ** Adds, pan-India combined market share of top 5 players to rise
to 68% by FY30 from 53% at FY23 
 Top 5 cement players on capacity basis        Share move 
                                                                     
 UltraTech Cement                              up 0.1%
 Adani Group (Ambuja  ABUJ.NS , ACC  ACC.NS )  ABUJ flat, ACC up 0.2%
 Shree Cement  SHCM.NS                         down 0.6%
 Dalmia Bharat  DALB.NS                        flat
 Nuvoco Vistas Corp  NUVO.NS                   up 0.1%
 
    ** YTD ULTC, ABUJ, ACC have gained between 12.9%-32.8% while
SHCM, DALB, NUVO down between 3.9%-19%

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))