After snapping up a series of companies in the cement sector, the Adani Group is now eyeing a majority stake in the port-based cement plant of Shree Digvijay Cement in Gujarat.
Leading home-grown private equity firm True North, the promoter of Shree Digvijay Cement Company, has been evaluating options for a complete exit following large-scale consolidation in the industry led by market leaders UltraTech Cement and Ambuja Cement.
The PE firm has been in talks with a few cement companies including the Adani group and sources indicated that the talks are still ongoing. The deal can go either way depending on the valuations, sources said pegging the deal size in the range of ₹800-850 crore.
True North acquired a majority stake in Digvijay Cement about seven years back and is now exploring options to sell as the market is growing more competitive, the sources said.
Adani Group declined to comment, while an email sent to True North remained unanswered. In a statement to the stock exchanges, which asked it to clarify reports about the Adani group eyeing its cement and port assets, Shree Digvijay Cement said it “is not aware about any such development, and we don’t comment on market speculations.”
It also said it had made all the necessary disclosures and not withheld any price sensitive information that may have a bearing on the operation/ performance of the company or stock price behaviour.
Shares of Shree Digvijay Cement have been on a rally and has appreciated 19 per cent over the last five dayst, while volumes have also been higher than normal, which was flagged by stock exchanges’ monitoring mechanism.
Q1 financials
Digvijay Cement started operations in 1944 in the coastal township of Digvijaygram at Jamnagar in Gujarat. It was taken over by True North, formerly known as India Value Fund Advisers (IVFA) in 2019. It acquired a majority stake in Shree Digvijay Cement from Brazilian firm Votorantim Cimentos’ direct and made an open offer to acquire a 25 per cent stake held by public shareholders.
Currently, it owns 54.66 per cent in the company.
Shree Digvijay Cement has been selling products under the Kamal Cement brand and began operations in 1944.
In the June quarter, it reported a 22 per cent increase in net profit at ₹14 crore. Sales at ₹195.95 crore in the quarter was up 10.8 per cent from ₹176.8 crore logged in the same period previous year.
Demand growth
The domestic cement sector is in the middle of an intense M&A tussle between the market leader Aditya Birla Group and the Adani Group.
UltraTech Cement, an Aditya Birla Group company acquired India Cements in June and Kesoram’s cement vertical.
Notwithstanding the growing consolidation in the industry, cement demand is expected to grow 6.5-7.5 per cent in this fiscal against 5.5 per cent logged in the previous fiscal, according to Crisil Intelligence report.
The demand growth will be driven by a 10 per cent rise in budgetary allocation for core infrastructure ministries and expectations that an above-normal monsoon will boost agricultural profitability, which, in turn, will lift rural housing demand. Infrastructure, which accounts for 29-31 per cent of the domestic cement demand, is expected to remain a key demand driver this fiscal too. Within infrastructure, roads have been the largest contributor, followed by railways, irrigation and urban infrastructure.
Published on August 25, 2025
