Gautam Adani enters into cement business
After enjoying immense success in the airports and ports business, Gautam Adani is now set to enter the Covid battered cement industry. Adani Enterprises has incorporated a wholly-owned subsidiary by the name of Adani Cement, as per filings with the stock exchanges. The subsidiary is to have 50,000 equity shares of ₹10 each.
The company has been registered with Registrar of Companies (RoC), Gujarat on June 11,2021. Operations are yet to begin, which means the company has no revenue as of now.
Adani Cement is to operate as “manufacturers, producers and processors of all types of cement” stated Adani Enterprises.
The diversification does come as a surprise to many considering the 58 year old has been the best wealth creator of 2021, so far. Adani has added more than $43 billion to his net worth. He owns stakes in a wide range of areas from ports to power to FMCG.
The Central Government has pushed to revive capital expenditure, which would directly spur on the cement sector. His entry into the cement business is likely to create a storm in the pandemic hit industry. It is believed he may aggressively acquire smaller businesses, in a manner similar to his expansion of his ports and airports businesses. His entry into the market could be an indication of good prospects in the cement industry once the pandemic subsides.
It will also be interesting to see if he could tap into the financial prospects of this new subsidiary, in a similar manner to what he did with his power transmission and gas arms. Both Adani Total Gas and Adani Transmission, have posted stellar performances on the stock market, and have helped the billionaire amass wealth.
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