Adani Group in talks to acquire Heidelberg Cement India: report
10 Oct 2024
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The Adani Group is reported to be in talks to acquire Heidelberg Cement India Limited, the German group’s Indian cement operations, which has a current valuation of about $1.2 billion.
Heidelberg Cement India, a subsidiary of Heidelberg Cement Group, has operations at Damoh in Madhya Pradesh, Jhansi in Uttar Pradesh and at Ammasandra in Karnataka.
Heidelberg started India operations in 2006 with total capacity of less than 3 million tonnes, which has since increased to 5.4 million tonnes and further to 6.26 million tonnes in 2020.
However, the German group was not satisfied with its position in India’s cement market. In July, CEO Dominik von Achten announced plans for a review of its India operations.
Increased competition for market share and the trend of business consolidation has cut into market share of cement makers in India.
The Adani Group entered cement industry in 2022 by acquiring Holcim's Indian operations, followed by a string of acquisitions.
While Aditya Birla Group’s UltraTech and JSW Cement were also in the race for Heidelberg Cement India, the Adani Group is reported to have threatened to drop out of the race if it there are other contenders.
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