It’s a dog-eat-dog scenario in the Indian cement sector as the pace of mergers and acquisitions (M&As) has been robust in the last few years. This includes acquisition of Jaiprakash Associates Ltd’s 21 mtpa cement assets by UltraTech Cement Ltd, which concluded recently. First and foremost, cement demand is yet to see a significant revival. Coupled with an oversupply situation it is making survival difficult for smaller unorganized cement firms. Some examples are the Orient Cement Ltd and Jaiprakash Associates deal and the acquisition of Reliance Infrastructure’s cement arm Reliance Cement Co. Pvt.

Source: Mint August 14, 2017 21:56 UTC