Adani-Holcim deal may trigger consolidation in cement industry: Experts

Expansion plans by most larger players despite glut in markets, fuel price-driven cost pressure and resistance from market to absorb higher cost may force weaker players out

The Adani-Holcim deal may trigger a wave of consolidation in the cement industry, say industry insiders and experts.

Most of the larger players have major expansion plans lined up even as major markets are in surplus. Add to it, the cost pressure on account of rising fuel prices and resistance from the market to absorb the higher cost and there may be a case for weaker players to look at an exit.

The domestic cement industry has witnessed significant consolidation over the past decade, pointed out Hetal Gandhi, director, CRISIL Research.

“Four of the largest players outside the Holcim group