Gautam Adani is poised to join the cement industry after achieving success in the airport and port sectors. Adani Enterprises, his flagship firm, told stock markets that it has launched a wholly-owned subsidiary called Adani Cement.
Adani Enterprises stated in its filing that Adani Capital has a paid-up share capital of 5 lakh and an approved share capital of 10 lakh. According to the company, the new subsidiary has 50,000 equity shares at $10 apiece.
On June 11, 2021, the newly formed firm was registered with the Registrar of Companies in Gujarat, although it has yet to commence operations. As a result, the firm has yet to generate any revenue, it said. Adani Cement, according to Adani Enterprises, would be a maker, producer, and processor of all sorts of cement.
Adani’s efforts at diversification would not seemed strange considering his recent financial surge. So far in 2021, the 58-year-old business billionaire Gautam Adani has been the biggest wealth builder, adding $43 billion to his net worth. His port-to-power conglomerate is already interested in FMCG, airport management, and power transmission.
The national government’s desire to stimulate capital spending, which is normally directly linked to the performance of this industry, may have boosted Adani’s bet on the cement business. His presence into the market might be a sign of good things to come in the cement sector once the epidemic has passed.
This news is expected to cause some upheaval in India’s competitive cement sector, which has been preparing for a comeback after being battered by Covid and other issues.
Adani may take a page from his ports and airports sector, where he has a substantial market share. This would imply making aggressive purchases to expand his cements firm.
It would also be intriguing to watch if Adani can capitalise on the financial potential of his new company in the same manner that he did with his power transmission and gas arms. Adani Total Gas, Adani Transmission, and Adani Enterprises have all had spectacular stock market results, adding to the billionaire’s fortune.
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Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.