Several major conglomerates, including Adani Group’s Ambuja Cements, Aditya Birla’s UltraTech Cement, JSW Group’s cement division, and Dalmia Bharat Group, are reportedly in discussions to acquire HeidelbergCement India Ltd, according to media reports.
The German building materials company Heidelberg Materials AG holds a 69.39 per cent stake in its Indian subsidiary, which is publicly traded. At current market rates, this stake is valued at approximately Rs 3,437 crore.
If the sale of a controlling stake proceeds, it would trigger a mandatory open offer for an additional 26 per cent from public shareholders, in accordance with Sebi’s takeover regulations.
However, in a separate statement to stock exchanges, HeidelbergCement stated it was unaware of any such developments. Earlier, on October 7, The Economic Times reported that the Adani Group was negotiating to acquire Heidelberg’s Indian operations. In a prior report from October 3, 2023, the same publication revealed that Heidelberg had been in bilateral discussions with JSW regarding the sale of its Indian assets.
The potential sale of Heidelberg’s Indian operations comes amid a major wave of consolidation in the country’s cement industry, as companies pursue expansion.
Heidelberg Materials Group entered the Indian market in 2006 by acquiring a controlling interest in Mysore Cements Ltd. Initially, the company formed a joint venture with Indorama Cement Limited, which later became a full acquisition by 2008.
In 2009, Indorama Cement was merged with Mysore Cements and rebranded as HeidelbergCement India Ltd. The same year, the company undertook a brownfield capacity expansion in Central India, increasing its cement production capacity from 2.1 million tonnes per annum to 5.4 mtpa.
Currently, HeidelbergCement India’s total grinding capacity stands at 6.26 mtpa, with an additional 7.1 mtpa capacity under Zuari Cement in India.
For the fiscal year FY24, HeidelbergCement India reported revenues of Rs 2,420.3 crore, reflecting a 6 per cent increase from the previous year’s revenue of Rs 2,283.4 crore. Net profit for FY24 rose sharply to Rs 167.7 crore, marking a 69 per cent jump from the Rs 99.1 crore profit recorded in the previous fiscal year.
Source: business-standard.com
