Dikhyaa Mohanty 
After tasting success in the airport and ports businesses, Gautam Adani is all set to enter the cement industry as his flagship company- Adani Enterprises informed stock exchanges that it has incorporated a wholly-owned subsidiary by the name of Adani Cement.
Adani Enterprises in its filing informed that Adani Capital has an authorised share capital of ₹10 lakh and paid-up share capital of ₹5 lakh and the fresh subsidiary has 50,000 equity shares of ₹10 each.
The newly minted company has been registered with the Registrar of Companies, Gujarat on June 11, 2021, and is yet to begin operations. So the company does not any turnover yet.
Adani Enterprises stated that Adani Cement will operate as “manufacturers, producers and processors of all types of cement”.
The diversification attempt from Adani does not seem surprising given the spurt in his wealth. The 58-year old business magnate has been the best wealth creator so far in 2021, adding $43 billion to his net worth. His port-to-power conglomerate already has an interest in sectors ranging from FMCG to airport management and power transmission.
Adani’s bet on the cement business might have been encouraged by the central government’s push to revive capital expenditure, which is usually directly proportional to the performance of this sector. His entry into the market could be an indication of good prospects in the cement industry once the pandemic subsides.
This development is likely to cause some disruption in the competitive Indian cement industry, which has been preparing for a revival after taking hits from Covid and earlier troubles.
Adani could borrow the playbook from his ports and airports business, where he holds substantial market shares. This would mean aggressive acquisitions to build up his blocks of cement business.
