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India's <keyword id="20884491" type="General" weightage="20" keywordseo="cement-industry" source="keywords">cement industry</keyword> is heating up faster than a kiln! If one’s tracking the sector, the war-like situation between the existing and emerging cement giants is pretty evident. For the uninitiated, Aditya Birla Group-backed <keyword id="19963567" type="General" weightage="100" keywordseo="Ultratech-Cement" source="keywords" meta.keywordsubtype="org" meta.entityname="Ultratech Cement" meta.hostid="261" meta.entityid="Ultratech Cement">Ultratech Cement</keyword> and <keyword id="19955648" type="General" weightage="20" keywordseo="Adani-Group" source="keywords">Adani Group</keyword> have been at loggerheads for increased market share in recent years. And now, JSW Cement also seems to be gearing up to challenge the potential duopoly. As conglomerates aggressively acquire smaller players to achieve market domination, the cement industry in India right now resembles an eighteenth-century battlefield. The battle has significantly escalated this year, but this trend of acquiring regional cement companies can be traced back to 2018 when Ultratech acquired Binani Cement. Since then, both Adani Group and Birla Group have been capturing checkposts all over India, one by one. Ultratech acquired Binani Cement to strengthen its base in the western region and this week, India Cement, for the southern states. Adani has also acquired the Hyderabad-based Penna Cement this year, after acquiring majority stakes in Ambuja Cements and ACC in 2022. But why the obsession with cement? <h2>Why are the Titans clashing for…cement?</h2>India's infrastructure boom is in full swing, and whoever controls the cement supply holds the key to this construction kingdom. Adani Group has been known to follow an acquire &amp; dominate strategy for capturing market segments. <keyword id="19907441" type="General" weightage="20" keywordseo="Aditya-Birla-Group" source="keywords">Aditya Birla Group</keyword>, however, has dominated the cement industry in India through Ultratech for a while now. The answer to the above question may simply lie in establishing the leadership moat for themselves. With even-growing public and private spending on infrastructure, both players want to capture the majority share to dominate the supplies of cement, which is essential for construction. <h2>Where is the sector heading?</h2>While both Adani and Aditya Birla groups have locked horns to acquire CK Birla’s Orient Cement for a while now, a new hurdle threatens their dominance. As per an Economic Times report, Sajjan Jindal-led JSW Cement has now started to evaluate the acquisition of the promoter stake in Orient Cement. As an emerging front, JSW Cement also aims to reach 50 MT per annum by 2030. However, two other major players, Shree Cement and Dalmia Bharat, already have 53 MTPA and 43 MTPA capacity. <div type="image" title="Birla Vs Adani" msid="112196675" hostid="261" sizebytes="284160" caption="&amp;lt;p&amp;gt;Look back at major acquisitions in the cement sector&amp;lt;/p&amp;gt;"></div> However, with over a dozen acquisitions over the last decade, both Ultratech and Adani Group are by far the largest players in the sector eyeing over 200 MT per annum by 2030. <h2>What about the prices?</h2>Will consumers benefit from this cutthroat competition to industry domination? In the short term at least, yes! While lower prices might sound appealing, it's essential to keep an eye on quality as consolidation in the manufacturing sector is always tricky. We don't want to end up with buildings crumbling like cookies. And let's not forget about the little guys. This consolidation of power into a few mega-corporations could squeeze out smaller players, reducing competition and potentially leading to higher prices in the long run. <h2>I think I’ve seen this film before….</h2>The current atmosphere of the cement industry feels reminiscent of what happened in the telecom industry in India in 2016 i.e. the infamous tussle of tariffs. As Reliance Industries launched Jio, it disrupted the entire segment and forced other telecom companies to compete on their terms. As a result, the tariffs fell sharply, companies shut and brands merged, but Jio still claims 40% of the market share in India in terms of subscriber count. Moreover, experts feel that the change in power dynamics in both these industries, cement and telecom, have direct ties to the current government’s industrial policy. Government policies seem to favour companies that have acquired a dominant position in distinct sectors of the economy, which in India’s case are led by two of the richest men in Asia — Gautam Adani and Mukesh Ambani. This strategy of adopting ‘<keyword id="1327299" type="General" weightage="20" keywordseo="national-champions" source="Orion">National Champions</keyword>’ is seemingly inspired by South Korea’s <keyword id="4933297" type="General" weightage="20" keywordseo="Chaebols" source="Orion">Chaebols</keyword> and Japan’s Zaibatsu conglomerates that came into existence decades ago. <h2>From corporate drama to k-drama: Chaebols</h2>The term Chaebol might ring a bell if you've watched K-dramas. They are family-owned business conglomerates in South Korea. This business structure originated in the 1960s and got so popular that it made its way into Korean pop culture. While chaebols have fueled the rapid growth of the Korean economy, concerns about their opaque governance and controlling shareholder interests often deter external investors. Japan’s zaibatsu were also similar financial and industrial conglomerates that were major forces in Japan during World War II. Korea’s Hyundai and Japan’s Mitsubishi are some prime examples of this structure. <h2>Growth of the Goliaths</h2>Viral Acharya, the former Deputy Governor of the RBI, highlights the decade-old trend of the central government achieving economic growth outcomes by working with large conglomerates in part, rather than with state governments. In his conference paper for the Brookings Papers on Economic Activity in March 2023, he demonstrates this pattern with examples from multiple sectors. “By way of specific examples, the share of the Top 5 groups by sales in Civil Engineering and Construction rose from 31% in 2016 to 42% in 2021, in Telecommunications from 65% to over 84%, and in the Retail trade sector from under 44% to over 65%. Similarly, the share of Top-5 groups by Assets rose sharply by 2021 to 68% in the Manufacturing of Basic Metals, 26% in the Manufacturing of Chemicals, 90% in the Manufacturing of Refined Petroleum and Coke, and 47% in the Manufacturing of Non-metallic Mineral Products (including cement and other building materials),” writes Acharya. While this strategy of ‘National Champions’ has benefitted the telecom sector, it has its caveats. The acceleration in the growth may lead to an oligopolistic economy, thereby restricting the entry of new players and stifling innovation. Additionally, a multi-dimensional concentration of power poses the threat of crony capitalism. <h2>National champions: checks and challenges</h2>There’s more to this debate. Arvind Subramanian and Josh Felman, in their paper titled ‘India’s Stalled Rise’ note that the collective impact of this strategy could be more adverse in India, more than anywhere else. They explain that the two big conglomerates — Adani Group and Ambani-led Reliance “have interests that extend throughout the economy, in defence production, ports and airports, energy, natural gas, petroleum, digital platforms, telecommunications, entertainment, media, retail, textiles, financial payments, and education.” Chaebols and Zaibatsu have/had their demerits that range from autocratic decision-making dubbed as ‘imperialistic management’ to the slow inclination of the market towards an oligopolistic structure. However, they weren’t shielded from international competition, nor was this strategy of creating ‘national champions’ shaped using government regulation. They were prevalent in sectors that faced competition internationally, like Hyundai in automobile manufacturing, keeping them in check. The lack of a similar system of checks and balances in India may lead to deeper implications of this strategy of ‘national champions.’ Viral Acharya further notes that they “grew not just at the expense of the smallest firms, but also of the next largest firms” and empirically established a causal link between market power and markups (broadly, profit). At a point when India has seen a monumental shift in infrastructure and looks to capture the market share that China could evacuate, the implications of a tilted policy could prove detrimental. While consolidation can improve performance and catalyse growth, we need to be very careful as a country of the direction we will set ourselves in at this crucial juncture. <h2>Also read:</h2> <div type="Article" hostid="261" msid="112159576" title="India Cement employees to lose jobs after UltraTech acquisition? Chairman Srinivasan answers" mstype="2" mssubtype="0"><payload><![CDATA[seealso]]></payload></div> <div type="Article" hostid="261" msid="112163130" title="Ambuja Cements Q1FY25 profit at Rs 789.63 crore; revenue at Rs 8,311.48 crore" mstype="2" mssubtype="0"><payload><![CDATA[seealso]]></payload></div>

Cementing dominance: Birla vs Adani, of Chaebols, conglomerates, and National Champions

<ul><li>At 7:40 am, the SGX Nifty was up 0.17%, indicating a green start for Nifty50.</li><li>Here’s a list of stocks to watch for in trade today. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>Indian stock-market indices are likely to see a slow start on Friday, led by positive cues from the global markets. At 7:40 am, the SGX Nifty was up 0.17%, indicating a green start for Nifty50. The US stocks closed mixed on Thursday amid disappointing economic data and slowed stimulus progress. The Dow Jones Industrial Average closed 0.23% lower, and the Nasdaq Composite was up 66 points. These are the stocks to watch out for during the trading session today: TVS Motor The members of the $8.5 billion TVS family decided to restructure the ownership of various companies, a measure which does not involve payment of brand royalty to the family members or their holding companies. The share price of TVS Motor closed 0.42% lower on Thursday. IRCTC The offer-for-sale for the Indian Railway Catering and Tourism Corp (IRCTC) was subscribed nearly two times on day by the non-retail investors. The retail investors will get a chance to bid for IRCTC offer-for-sale (OFS) today. The government is planning to sell up to 20% stake in IRCTC through OFS which opened for subscription on Thursday. The share price of IRCTC closed 12% lower on Thursday. HDFC Bank The private lender HDFC Bank informed exchanges that the Reserve Bank of India (RBI) had imposed a monetary penalty of ₹10 lakh on the bank for bouncing of subsidiary general ledger (SGL). This led to a shortage of balance in certain securities in the Bank’s CSGL account on November 19, it said. The share price of HDFC Bank closed 2% lower on Thursday. Dalmia Bharat, UltraTech Cement, ACC, Ambuja Cements and Shree Cement According to <a href="https://www.livemint.com/news/india/cci-searches-offices-of-major-cement-cos-11607621552574.html">reports</a>, the Competition Commission of India (CCI) has conducted searches on the premises UltraTech Cement, ACC, Ambuja Cements, Dalmia Cement (Bharat) and Shree Cement, among others to find evidence of price collusion. United Spirits United Spirits, a part of global liquor giant Diageo appointed Hina Nagarajan as the company’s new CEO with effect from July 1, 2021. Incumbent Anand Kripalu will step down on June 30. The share price of United Spirits closed 2% higher on Thursday. TCS Tata Consultancy Services (TCS) said it plans to invest more than $100 million in Austin and hire 1,000 new employees across Texas. TCS has expanded its business operations in Austin, Texas with the construction of a new facility, doubling its presence to more than 400 professionals in the city and adding to its over 5,500 employees across the state. The share price of TCS closed 1% lower on Thursday. Mahindra &amp; Mahindra ICRA has reaffirmed Mahindra &amp; Mahindra rating of non-convertible debenture programme of ₹1,500 crore to stable. It has also assigned a stable rating to long-term loans worth ₹1,800 crore. The share price of Mahindra &amp; Mahindra closed 3% lower on Thursday. Canara Bank Canara Bank said it had approved the issue price at ₹103.50 per share for its qualified institutional placement (QIP) to raise ₹2,000 crore. Earlier this week, the bank had set the floor price for the issue at ₹103.50 apiece. The share price of Canara Bank closed 5% lower on Thursday. Jash Engineering The pump and pumping equipment manufacturing company, Jash Engineering received orders worth ₹20.65 crore in November. The share price of Jash Engineering closed 2% lower on Thursday. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/facebook-hit-with-2-massive-antitrust-lawsuits-from-the-ftc-and-46-states-seeking-to-spin-off-instagram-and-whatsapp/articleshow/79652195.cms" data-type="tilCustomLink">Facebook hit with 2 massive antitrust lawsuits from the FTC and 46 states seeking to spin off Instagram and WhatsApp</a> <a href="https://www.businessinsider.in/stock-market/news/airbnb-prices-ipo-at-68-per-share-will-raise-3-5-billion/articleshow/79653812.cms" data-type="tilCustomLink">Airbnb prices IPO at $68 per share, will raise $3.5 billion</a>

Top stocks to watch — IRCTC, HDFC Bank, TCS, TVS Motor, Dalmia Bharat, UltraTech, ACC, Ambuja, and others

New Delhi, Mar 21 () Cement maker Dalmia Bharat Ltd on Saturday said its board has approved a proposal to buy back shares worth up to Rs 500 crore.The company further said it intends to buy not more than 71,42,857 shares at a maximum price of Rs 700 per unit.The shares will be bought back from the open market by using the electronic trading facilities of National Stock Exchange of India Limited and BSE Limited, the company said in a statement."The Board of Directors, at its meeting held on March 21, 2020, has approved buyback of the company's fully paid-up equity shares having a face value of Rs 2 each for an aggregate amount not exceeding Rs 500,00,00,000 excluding buyback tax, brokerage, costs, fees, turnover charges, taxes such as securities transaction tax, goods and services tax (if any) and income tax, stamp duty, advisors fees, filing fees and other incidental," it said.Dalmia Bharat Ltd currently has a cement manufacturing capacity of 26.5 million tonne per annum. The company's 12 cement manufacturing units are spread across nine states. The company also the lowest carbon footprint in the cement world, globally.On Friday, Dalmia Bharat shares closed 5.06 per cent up at Rs 511.10 apiece on the BSE. ABI MKJ

Dalmia Bharat board approves Rs 500-cr share buyback proposal

New Delhi, Mar 31 () Cement to sugar Dalmia Bharat Group on Tuesday announced a Rs 25 crore contribution to the PM-CARES Fund to fight the coronavirus pandemic. "Both the Centre and state governments have done an exceptional job to contain the outbreak of COVID-19 in India. We are doing our duty by making a contribution of Rs 25 crore to the PM-CARES Fund and will wholeheartedly do everything to support our PM and state CMs in their efforts to fight this virus," Dalmia Bharat Group Managing Director Puneet Dalmia said in a statement. As part of relief measures, the group is also providing ration, grocery and accommodation to all the contractual labourers who are stuck due to the nationwide lockdown and stoppage of all transportation. Further, the group has committed the use of playgrounds, guest houses and technical centres across all plants to the local authorities for using them as facilities for tackling COVID-19 cases. The canteens of the Dalmia Bharat factories across India are also being used to prepare food for local distribution in the regions. Over 100 food packets are being provided twice every day to the local municipalities and police to be distributed among the needy and homeless near all the plant locations. ABI HRS

Coronavirus: Dalmia Bharat Group announces Rs 25 cr contribution to PM-CARES Fund

Mumbai, Feb 3 () Cement manufacturers association (CMA) on Monday said the government's budgetary push for infrastructure, logistics and warehousing will boost the industry.
Finance minister Nirmala Sitharaman in her over two-hour long speech announced the plans to set up five new smart cities on PPP model and 100 more airports to be set up by 2024 to support UDAN scheme and allocated Rs 1.7 lakh crore to transportation.
"The emphasis on highways and roads development is well placed. This captures the priorities of economic development and an aspirational India. We would hope that rural demand gets revived and it assists in job creation," CMA President Mahendra Singhi said.
He further said the emphasis on infrastructure development, new 100 airports and focus on roads will go a long way to revive cement demand.
The association has also welcomed the strong push in the budget for doubling farmers' income by 2022, saying strong rural sector will boost the cement sector.
"The development of warehouses and cold storage facilities in rural India will boost agri-infrastructure in the country which is a welcome development," Dalmia Cement (Bharat) CMD Singhi said.
According to CMA, the decision on abolishing the dividend distribution tax (DDT) will also benefit corporate India and will give a big boost to investment.
"The budget aims at making growth more inclusive while retaining focus on the immediate priorities. Priorities given to household, roads, railways, economic corridors, solar power, accelerated development of highways should help boost development and wealth creation.
The cement industry is committed towards playing a strong role in the government's aspirational agenda for transformative economic growth," CMA Vice President and CEO and MD of ACC Neeraj Akhoury said. PSK BAL

Govt's budgetary push for infra to boost cement industry: CMA

In a new announcement, Dalmia Bharat declared a 4-month accelerator designed to mentor and invest in promising startups which are focused on smart city ideas. 
 A joint initiative between DLabs at ISB and Centre for <keyword id="107737" type="ORGANIZATION" weightage="20" keywordseo="Entrepreneurship">Entrepreneurship</keyword> at Ashoka University, the Dalmia Bharat AIM Smart City Accelerator Program is supported by <keyword id="10387" type="CITY" weightage="20" keywordseo="Microsoft">Microsoft</keyword> India, with focus on four broad verticals: healthcare, education, transportation and infrastructure. 

	"India ranks third in the global startup ecosystem and through this program, we want to sensitize young entrepreneurs on how to best utilize this startup boom for smart city development," says BK Singh, Senior Executive Director at Dalmia Bharat Group. 
 

	ISB and Ashoka University will provide access to some of its finest academic and industry networks, which will provide mentorship to the startups. Holostik Group will also support the accelerator through its mentor network and access to funding.
 Microsoft will support this through its BizSpark program and the recently announced special initiative for Indian technology startups for smart cities. "This program will help entrepreneurs leverage Microsoft technology to develop innovative solutions that can support cities to become smart, sustainable and future-ready," says <keyword id="1574462" type="UNKNOWN" weightage="20" keywordseo="Narendra-Bhandari">Narendra Bhandari</keyword>, General Manager - Developer Experience at Microsoft India. 

	Applications for this program will be shortlisted by mid-March on the basis of financial viability, technology feasibility, desirability to target audience, sustainability of the solution and track record of the team. An investment support of up to Rs 10 lakh will be provided to each team selected. 
 <keyword id="2623101" type="UNKNOWN" weightage="20" keywordseo="Dalmia-Bharat-Limited">Dalmia Bharat Limited</keyword> (DBL) has been a pioneer in cement manufacturing for over seven decades now. The Group's current capacity of 25 million tonnes is one of the largest in the Indian cement industry. 
	 
	(Image credits: BCCL)

Dalmia Bharat announces smart city accelerator for startups

Online education company for developers and IT professionals, <keyword id="2681073" type="General" weightage="100" keywordseo="pluralsight" source="Orion">Pluralsight</keyword>, which was recently valued at more than $1 billion has announced to lay off 20 per cent of its global workforce, about 400 employees. CEO Aaron Skonnard said in an email to employees he owns this outcome and "take full responsibility for the decisions that got us here". "I've spoken to all of you this year about the challenging economic environment we're operating in and how it has affected our business performance," he wrote. Unfortunately, these challenges have only accelerated in Q4 and, as a result, "today we are restructuring and reducing the size of our team, impacting roughly 20 per cent of our team members", he said late on Monday. Founded in 2004, Pluralsight had a net loss of $163.5 million in 2019 and $164 million in 2020, according to the US SEC documents. The CEO said that those impacted "can also look for additional communication from your executive about special All-Hands meetings for each organization later this week". "I'm sorry for the impact this will have on many of you, we've let you down during a difficult time," he added. Pluralsight is an online education company that offers a variety of video training courses for software developers, IT administrators, and creative professionals through its website. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/indias-retail-inflation-hits-11-month-low-in-november-at-5-88/articleshow/96177420.cms">India's November retail inflation at 5.88%, within RBI's comfort band</a> <a href="https://www.businessinsider.in/business/corporates/news/dalmia-bharat-to-acquire-cement-power-plants-of-jaiprakash-associates-for-5666-crore-enterprise-value/articleshow/96175228.cms">Dalmia Bharat to acquire cement, power plants of Jaiprakash Associates for ₹5,666 crore enterprise value</a>

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Cementing dominance: Birla vs Adani, of Chaebols, conglomerates, and National Champions

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Top stocks to watch — IRCTC, HDFC Bank, TCS, TVS Motor, Dalmia Bharat, UltraTech, ACC, Ambuja, and others

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Dalmia Bharat board approves Rs 500-cr share buyback proposal

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Coronavirus: Dalmia Bharat Group announces Rs 25 cr contribution to PM-CARES Fund

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Govt's budgetary push for infra to boost cement industry: CMA

PTI

Dalmia Bharat announces smart city accelerator for startups

BI India Bureau

Online education company and unicorn Pluralsight lays off 400 employees

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