JSW Cement has started to assess the purchase of CK Birla's promoter holding in Orient Cement Ltd (OCL). This comes amidst a wave of consolidation in the industry that has seen the Aditya Birla and Adani companies scramble to acquire assets all over the nation. With this move, OCL's 8.5 million tons per annum (MTPA) capacity now has three contenders: the Adani and Aditya Birla groups, who have both been in active discussions with Delhi-based CK Birla since late last year, when JP Morgan began the sale process, have now joined the fray. 

With Jindal's attempt to enter the race for OCL's 8.5 million tonnes annual capacity, a third candidate will join Gautam Adani and Kumar Mangalam Birla, who have both been in constant communication with Kumar Mangalam's uncle, CK Birla, based in Delhi, since late last year, when JP Morgan started a sale process. The three faced up in 2022 for the $6.5 billion purchase of Holcim's Indian assets, the largest merger and acquisition in the country's building materials sector. Adani ultimately defeated the other two to become the nation's second-largest player overnight, upending the established order. Between them, the two have since bought seven businesses.

The Birla family and private investment vehicles own a 37.9% promoter share in Orient Cement. An open bid by minority shareholders for a further 26% ownership will also be triggered by an acquisition. However, in anticipation of a transaction, OCL's shares have increased by 56% in just three months. This is because it is thought that CK Birla's second generation has little interest in managing the company. A deal for the 63.9% would cost as much as Rs 4546.54 crore at the present market pricing. The market value of OCL is currently Rs 7115.09 crore.

Jindal saw a chance to enter the race when Adani and Birla both shifted their attention south in the previous month, with the former purchasing Penna Cement in June, and the latter's negotiations with Adani and Ultratech dragging on over valuations and environmental clearance of important limestone quarries. Ultratech quickly invested in India Cements, gaining a minority position, and last Sunday increased its ownership to majority.