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Adani Group buys Heidelberg’s cement unit in a deal worth ₹10,000 crore. Learn more about the proposed buyout and industry consolidation
Adani Group buys Heidelberg’s Cement Unit in India
The Adani Group has entered discussions to acquire the Indian cement operations of Germany’s Heidelberg Materials. The proposed buyout, led by Ambuja Cements, could be valued at around ₹10,000 crore ($1.2 billion), according to sources familiar with the matter. This acquisition would further fuel the ongoing consolidation in India’s cement industry, following Adani’s entry by purchasing Holcim’s India operations in 2022.
Potential Deal Details
As of June 30, 2024, Ambuja Cements had ₹18,299 crore in cash reserves. However, the Adani Group may back out if the process turns into a full-sale competition involving other contenders. The deal would enhance Adani’s position as India’s second-largest cement producer, closely competing with industry leader UltraTech, which has also been acquiring companies to maintain its dominance.
Impact on India’s Cement Industry
The acquisition, if successful, would consolidate Adani’s hold on the cement market, pushing industry-wide competition further. HeidelbergCement India and Zuari Cement are the German company’s current operations in India, which are now part of this evolving landscape.