Consolidation Trends in Industries | Quick ₹eads

by Karnivesh | 11 February 2026

India's industries are undergoing a fascinating wave of consolidation, where giants merge and acquire to dominate markets amid booming demand and economic growth. This shift isn't just reshaping balance sheets it's rewriting the rules of competition across key sectors.

The Cement Surge

Picture a dusty construction site in rural Maharashtra, where cranes lift beams for a new highway linking Mumbai to Nagpur. The cement pouring in comes mostly from two behemoths: UltraTech and Ambuja. Over the past few years, these players have gobbled up smaller rivals, pushing the industry's top five firms to control over 50% of capacity, up from around 30% a decade ago.

Ambuja Cements, backed by the Adani Group, snapped up a 46.8% stake in Orient Cement for ₹81 billion in 2024, boosting its output to nearly 97 million tonnes per annum (MTPA). UltraTech, not far behind, grabbed a 23% stake in India Cements for ₹18.85 billion, aiming for 140 MTPA soon. This consolidation stems from India's infrastructure boom government projects like the National Infrastructure Pipeline, with 42% underway, demand 485 million tonnes of cement by FY26, growing at 7.5% CAGR. Smaller players struggle with rising fuel costs, like coal and petcoke, forcing them into the arms of giants who cut expenses by ₹530 per tonne through scale.

The payoff? Ambuja eyes 20% market share by FY28, with ₹60,000 crore in net worth and zero debt fueling more buys. It's a classic tale of survival of the biggest in a market projected to hit $40 billion by 2032.

Telecom's Trio Takeover

Flash back to 2016: India had 12 telecom operators, each slashing prices in a brutal subscriber war. Fast-forward to 2025, and it's a tight trio Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) commanding the field after waves of mergers.

The Vodafone-Idea merger in 2018 created a No. 1 challenger to Jio, but debt woes lingered. Airtel scooped Tata Teleservices' mobile business debt-free, while Jio absorbed Reliance Communications' assets. Result? Jio and Airtel now hold over 80% of broadband subscribers, with 1.17 billion mobile users total. Jio leads with volume; Airtel wins on premium ARPU and 5G rollout.

This shakeout slashed operators from 12 to effectively three, curbing price wars and lifting sector revenues. Average Revenue Per User (ARPU) climbed as 5G subscribers surged, with TRAI data showing 44.82 million fixed wireless broadband users by late 2025. For consumers, it means better networks; for businesses, stable giants funding massive capex. Vi clings on at third, but its debt highlights why consolidation weeds out the weak.​

Banking's Mega Merges

Imagine a small-town branch in Punjab, where customers once juggled accounts across fragmented public banks. Today, those services hum under fewer, stronger roofs. Government-led mergers slashed public sector banks (PSBs) from 27 to 12, with mega moves like Punjab National Bank absorbing Oriental Bank and United Bank in 2020.

These consolidations hold 72% of India's banking assets and tackled NPAs that once hit 75% of the system. State Bank of India (SBI), post-2017 associate mergers, now pushes for more to rival global giants, boosting scale for USD 5 trillion economy loans in highways and energy. Efficiency gains shine: shared IT platforms cut costs, wider networks serve rural India better.

Numbers tell the story recapitalization needs dropped as bigger banks absorbed shocks. A landmark Q4 2025 deal saw Emirates NBD eye RBL Bank for $3 billion, the largest foreign banking buy, signaling consolidation's global pull. PSBs now fund mega infra without frequent bailouts, proving mergers build resilience.​

FMCG's Fragmented Fight to Scale

In a bustling Kirana store in Bengaluru, shelves stock national brands alongside regional gems. But behind the scenes, fast-moving consumer goods (FMCG) players consolidate to conquer fragmented supply chains eating one-third of small firms' revenues.​

Volumes grew 13.9% in Q2 2025, driven by urban and rural demand, but scale wins. Jubilant Bharti Group grabbed 40% of Hindustan Coca-Cola for ₹12,500 crore in 2024; Agro Tech Foods fully owned Del Monte for ₹1,300 crore in early 2025. Consumer products hit $3.3 billion in Q3 2025 M&A, part of EY's $26 billion quarterly total, up 37% year-over-year.

Larger platforms integrate regionals, centralizing procurement and distribution for multi-category empires. McKinsey notes this mirrors global trends, building trust and resilience amid rising costs. In India, it means national reach for local flavors, fueling growth in a market still expanding deeply.​

Power's Capacity Clash

India's power grid hit a record 242.49 GW demand in 2025, with 41 GW renewables added in 11 months. Energy led Q1 2025 M&A at $7.3 billion, up 15-fold. Power and chemicals clocked $3.3 billion each in Q2 deals.

NTPC Green Energy and Adani Power merge assets for scale, eyeing 458 GW peak by 2032 via 6.48 lakh km transmission lines. Consolidation tackles coal rigidity, boosting renewables with batteries and grid upgrades. Big players absorb smaller ones, cutting duplication amid Rs 38,849 crore projects.

Why It Matters Now

India's M&A hit $26 billion in Q3 2025 alone across 649 deals, with domestic consolidation shining despite global jitters. Sectors gain scale for infra push, efficiency amid 6.7% GDP growth, and global plays like Tata's $4.45 billion Iveco buy.​

Yet challenges loom: integration pains, overcapacity risks. Winners like Ambuja or Jio show scale trumps solitude, positioning India as a deal dynamo. For businesses, it's a call to adapt or get acquired.