Adani Group Eyes $1.2 Billion Acquisition of Heidelberg's Indian Cement Operations

Adani Group in Negotiations to Acquire Heidelberg's Indian Cement BusinessThe Adani Group is reportedly in discussions to acquire the Indian cement operations of Germany's Heidelberg Materials, with the deal valued at approximately $1.2 billion.

Led by billionaire Gautam Adani, the conglomerate made its entry into India's cement sector in 2022 through the acquisition of Holcim's local units. Since then, Adani has actively pursued several acquisitions to compete with UltraTech Cement, the largest player in the market.

The potential acquisition of Heidelberg's Indian assets fits into Adani's broader strategy to expand its cement footprint. Following its purchase of Ambuja Cement from Holcim, which was valued at $6.5 billion, Adani became the second-largest cement producer in the country.

In addition to the reported talks with Heidelberg, Adani Group has been exploring other opportunities, including the potential acquisition of Gujarat's Saurashtra Cement and the cement business of Jaiprakash Associates, among others.

The conglomerate has set an ambitious goal of capturing 20% of the Indian cement market by the financial year 2028. As of now, neither Adani Group nor Heidelberg Materials has publicly commented on the ongoing negotiations.

Heidelberg Materials entered the Indian market in 2006 and currently operates four plants with a combined capacity of 12.6 million tonnes per annum, marketing its products under the Mycem and Zuari brands. However, the company's profits declined for the first time in five quarters during the three months ending in June, attributed to a decrease in sales volume and pricing pressures.