Adani Cement Industries Limited is mulling a bid for Kesoram Industries Limited (NSEI:KESORAMIND)?s cement assets as it explores inorganic ways to more than double its total production capacity to 140 million tonne per annum (MTPA) by fiscal year 2028. "Some of the bankers had reached out to the group and they are weighing the options. Even though we are yet to hear from them, we believe the Adani Group (Adani Enterprises Limited (BSE:512599)) is interested as they want to aggressively increase their production capacities," a banker close to the development told FE.

UltraTech Cement Limited (NSEI:ULTRACEMCO), India's largest cement producer, had earlier evinced interest in the cement assets and initiated negotiations with the promoters. Another source also confirmed the development and added that the Adani Group was expected to meet the promoters, following which due diligence of the assets would be conducted. Kesoram Industries ?

which has presence in cement, tyres & tubes, heavy chemicals and spun pipes ? sells cement under the brand Birla Shakti. According to the company's website, it has two manufacturing plants located at Sedam, Karnataka (Vasavadatta Cement) and Basant nagar, Telangana (Kesoram Cement).

The company has a total production capacity of 10.75 million metric tonne. It also offers consulting, research, trading and engineering among other services. Adani Cements, the holding company of Adani Group cement firms ?

Ambuja Cements Limited (BSE:500425) and ACC Limited (NSEI:ACC) ? was planning to add the next 70 MTPA through both organic and inorganic routes. Following this deal, Adani Cements' combined present installed production capacity of 67 MTPA was expected to move to 100 MTPA by 2025.

The ones that would be built by the organic route would be the "most energy- and cost-efficient" and would also bring in the latest technology as some of the plants it acquired are aging. The group has already entered into agreements for technology and design for the facilities it intends to build from now till March2028, sources added. The new capacities being built would only manufacture green cement and these would be mainly funded through internal accruals.