Representative image created by AINew Delhi | Mumbai: JK Lakshmi Cement and Chetinad Cement are bidding to acquire the Telangana-based Deccan Cements, people told ET that ET said that there is a demand for regional suppliers of freight-building materials as a state-driven infrastructure in the neighboring and Andhra fuel.
Deccan Cements, by the end of this year, is demanding an enterprise price of $ 360 million (Rs 3,110 crore) for the company, with an expected operational capacity of 4 million tonnes by the end of this year, people came to know about the discussions. It translates to about $ 90 for each ton capacity.
Replacement evaluation in India’s regional -divided cement industry vary widely, with greenfield expansion often costs above $ 100 per ton. Each tonne content usually evaluates more appropriate in southern India due to the use of low capacity on each ton of material and nude cement feeling (NCR).
Deccan cements plants are located on the outskirts of Vijayawada, the second largest city in Andhra Pradesh, although its corporate headquarters is in Hyderabad. The company is played by Parvati Penmech.
Deccan has installed EY for potential sale according to sources.
Amravati, the new capital of Andhra Pradesh, is promoting a state-driven infrastructure boom in one region with a significant number of integrated cement units. The Center has unveiled projects worth Rs 50,000 crore to upgrade the state capital.
Deccan Cements, JK Lakshmi Cement, Chettinad Cement and EY did not answer ET questions on the subject till the publication of this report.
Delhi -based JK Lakshmi Cement has no manufacturing appearance in Andhra Pradesh or Telangana. Chennai -based Chestinad Cement has manufacturing facilities in both states.
Stock growth
Deccan Cements shares have increased by about 66% in 2025 so far, which is at a high level of its lifetime of Rs 1,125 earlier this month.
The company has been watching a steady decline in profits since 2021, with a full year profit for FY 2025, it is only Rs 8 crore on the sale of Rs 527 crore. It had a pure cash outgo of Rs 87 crore for the year. It has been produced before interest, tax, depreciation and refinement (Ebitda), which was Rs 489 per ton of cement produced by Rs 489 per tonne. It makes a poor comparison with an industry average Ebitda of Rs 900–1200 per ton. Those who monitor the industry warned that there are benefits of the scale of big players.
India’s cement sector has been looking at the consolidation since FY 2023, with the market leader UltraTech Cement and the second largest Adani group that is buying most of the assets. This consolidation focuses in the southern markets of India, which is about one -third of the total production in the country.
Cement demand in the country has been strong in the last few years. In anticipation of moving forward, most cement producers in the country are aggressively expanding capabilities.
