Billionaire Gautam Adani's Ambuja Cements agreed to buy a 47% stake in Orient Cement in a deal valued at $963 million, stepping up acquisitions amid intensifying rivalry with tycoon Kumar Mangalam Birla.

India's Ambuja Cements said on Tuesday it would acquire a 46.8% stake in Orient Cement, valuing the company at 81 billion rupees ($963.5 million). The Adani-owned cement maker will buy the Telangana-based company's shares at 395.

Ambuja Cements Ltd., part of the Adani Group, acquired Orient Cement Ltd. for 81 billion rupees ($963 million), as billionaire Gautam Adani continues to snap up makers of the key raw material needed for India’s infrastructure push.

Ambuja Cements, part of Adani Group, will acquire a 46.8% stake in Orient Cement Ltd for ₹8,100 crore. The deal includes an open offer for an additional 26% stake and aims to enhance Ambuja's cement capacity to 100 MTPA by FY25.

Ambuja Cements, India's No.2 cement maker, said on Tuesday that it would buy a nearly 47% stake in rival Orient Cement for 37.91 billion rupees ($451 million), but analysts said there were doubts about the deal receiving regulatory approval.

The deal will also provide Ambuja Cements potential additional capacity of 6 MTPA in North India, leveraging Orient Cement's high quality limestone reserves in Rajasthan.

Ambuja’s acquisition of a significant stake in Orient Cement is a strategic bet on India’s growth story, but with earnings under pressure, the challenge now lies in making the premium payout deliver returns.

Ambuja Cements , India's No.2 cement maker, said on Tuesday it would buy a nearly 47% stake in rival Orient Cement for 37.91 billion rupees ($451 million), but analysts raised doubts about the deal winning regulatory approval.

OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity along with statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA

Ambuja Cements Ltd., part of the Adani Group, has agreed to acquire Orient Cement Ltd. in a deal valued at 81 billion rupees ($963 million), as billionaire Gautam Adani continues to snap up makers of the key raw material needed for India’s infrastructure push.

Ambuja Cements, India's No.2 cement maker, said on Tuesday it would buy a nearly 47% stake in rival Orient Cement for 37.91 billion rupees ($451 million), but analysts raised doubts about the deal winning regulatory approval.