Adani Group: Adani Group will takeover this company for 10000 crores! What is the plan to beat Birla?

 | 
aa

Gautam Adani: Adani Group company Ambuja Cement will lead the acquisition of Heidelberg's Indian unit. If this deal is completed, competition in the cement industry is expected to increase. The country's top cement manufacturer UltraTech is also acquiring companies to maintain its leadership.

aa

Adani Group Heidelberg India: After acquiring Ambuja and ACC Cement, Adani Group is continuously expanding its presence in the cement industry. After Aditya Birla Group, Adani Group is the second largest producer of cement in the country. Now the Gautam Adani-led group has started talks to buy the Indian cement business of German company Heidelberg Materials to expand its business in the cement industry. Adani Group company Ambuja Cement will lead the acquisition of Heidelberg's Indian unit. According to the news published in the Economic Times, the deal is expected to be around $1.2 billion (Rs 10,000 crore).

Adani Group is the second largest cement manufacturing group

If this deal is completed, competition in the cement industry is expected to increase. The country's top cement manufacturer UltraTech is also acquiring companies to maintain its leadership. Adani Group is the second largest cement manufacturer in the country. In the year 2022, the group entered this sector by acquiring the Indian market of Holcim. Experts say that like Holcim, Adani Group also wants to complete this deal soon.

Heidelberg Cement is a company listed in the Indian market

. Ambuja Cement had cash and cash equivalents of Rs 18,299 crore on June 30, 2024. A person associated with the matter said that if it becomes a full sale process with other claimants, then the Indian group can exit this agreement. The German company does business in the Indian market under the name of Heidelberg Cement India and Zuari Cement. Heidelberg Cement is a listed company in the Indian market but Zuari Cement is not listed.

Heidelberg has a presence in 50 countries of the world.

The listed company has a market cap of Rs 4,957 crore and it is 69.39% of the ownership of the parent company. Heidelberg is one of the largest cement producers in the world and has a presence in 50 countries. Heidelberg entered the country's cement industry in 2006 with the acquisition of Mysore Cement, Cochin Cement and Indorama Cement. After taking over Italcementi in 2016, the group doubled its business in India. According to the company's website, the current production limit is 14 million tonnes. No information has been given publicly by Heidelberg and Adani Group regarding this deal.

Total production limited 53.5 million tonnes

The German company operates in nine countries of the Asia-Pacific region. Its total production limit is 53.5 million tonnes. After Indonesia, India is second in this sector, with a capacity of about 31 million tonnes. Heidelberg is working on the merger of HeidelbergCement India and Zuari Cement, but the matter is stuck on stamp duty payment. Chief Financial Officer Anil Sharma had told analysts that we are working on it. He had said that the merger is expected to be completed by FY 26 or FY 27.

Adani Group entered the sector by buying Ambuja Cement and ACC from Holcim Group for more than $6 billion. The combined production capacity of Ambuja Cement and ACC at that time was around 70 million

tonnes. After this, Adani Group has made several acquisitions in the cement industry including Sanghi Industries and My Home Group's grinding unit. In June, Adani Group made a deal of Rs 10,422 crore to acquire Panna Cement Industries. Adani Group wants to increase its production capacity in the cement industry to 140 million tonnes by 2028.