The Tata group also once owned a stake in ACC, but sold its stake to Ambuja Cement in 1999. Interestingly, the Adani Group has recently overtaken the Tata Group to become the country’s most valuable business conglomerate. ACC’s income is Tk 16,151 crore. And now Karan Adani will head the company at a time when the cement sector is expected to see huge ups and downs. At present Aditya Birla Group’s Ultratech Cement is the largest cement manufacturing company in the country.
But with the entry of the Adani Group into the cement sector, stiffer competition is likely. Adani Group aims to become the largest cement company in the country by 2030. In such a situation, Adani Group may take over many more small companies in the future.
The Tatas sold the stake
Karan, 35, is believed to have played a key role in the acquisition of Adani Ambuja Cements and ACC. Currently, he is the CEO of Adani Port and entrusted with the maintenance of ACC, a company now 86 years old. Corporate leaders like Nani Palkiwala and Pallonji Mistry have taken charge of the ACC. It was founded in 1936 by ten cement companies. The Tatas once had a stake in it, but sold their stake to Ambuja Cement in 1999.
Ambuja Cement owns 54.5 percent of ACC. The Adani family intends to invest an additional Rs 20,000 crore in Ambuja Cement through convertible warrants. Adani Group currently holds 63.11 percent stake in it.
Who is Karan Adani?
After graduating from Purdue University with a degree in Economics, Karan began his corporate career with Adani Mundra Port. Today, he is responsible for the strategic development of the Adani Group and oversees the day-to-day operations of the group’s many businesses. He worked under the guidance of Adani senior and family confidant Malaya Mahadevi. Karan is married to Cyril Amarchand Mangalas’ partner and Cyril Shroff’s Mulligi Paridhi.