UltraTech, Adani Cement, and JSW in Race for Heidelberg India
Cement

UltraTech, Adani Cement, and JSW in Race for Heidelberg India

UltraTech Cement, a flagship company of the Aditya Birla Group and India?s second-largest cement producer, along with Adani Cement, led by Parth Jindal and the Adani Group, might join the race alongside JSW Cement, led by Parth Jindal, to acquire Heidelberg Cement. Heidelberg Cement, a global company headquartered in Germany, has put its Indian subsidiary on the market, which operates with a manufacturing capacity of 13.4 million tonnes per annum across various plants in India, including locations in Madhya Pradesh, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Maharashtra, Tamil Nadu, and Kerala.

JSW Cement has initiated talks with Heidelberg Cement; however, Heidelberg?s exit strategy from India involves a comprehensive bidding process, according to a source familiar with the matter. Additionally, Heidelberg's Indian subsidiary, being a listed entity, must adhere to the due process outlined by the Securities and Exchange Board of India (SEBI) to safeguard investor interests.

Operating challenges are mounting for foreign-owned cement companies in India, the world?s second-largest market, due to intensified competition and the necessity to invest significantly in decarbonisation projects. UltraTech, led by Kumar Mangalam Birla, plans to expand its capacity from 138 million tonnes per annum (mtpa) to 200 mtpa. The company has already doubled its grey cement production capacity from 66.3 mtpa in FY16 to 132.4 mtpa in FY23. UltraTech has commenced work on an additional capacity of 22.6 mtpa, investing Rs 130 billion in the expansion.

Meanwhile, Adani Cement, under the leadership of billionaire Gautam Adani, acquired Ambuja Cements and ACC in India, owned by Switzerland-based Holcim. This strategic move propelled Adani Cement to become the country?s second-largest cement producer overnight. Combined, Ambuja and ACC have a capacity of 73 mtpa, with plans to increase it to 140 mtpa by FY?28. These debt-free companies generate revenue of Rs 400 billion and anticipate annual sales growth of 18-20%.

It is noteworthy that Heidelberg Materials expanded its presence in the Indian market through acquisitions after entering India in 2006. The group acquired majority stakes in Mysore Cements and Cochin Cements. In 2008, Heidelberg Materials acquired the Indorama Cement joint venture, further solidifying its presence. The group augmented its capacity by 3 mtpa in Central India through brownfield expansion in 2013. Additionally, the acquisition of Italcementi in 2016 enabled the group to more than double its installed capacity, positioning it among the top 10 players in India. Heidelberg Materials sells its products under the Mycem and Zuari brands.

UltraTech Cement, a flagship company of the Aditya Birla Group and India?s second-largest cement producer, along with Adani Cement, led by Parth Jindal and the Adani Group, might join the race alongside JSW Cement, led by Parth Jindal, to acquire Heidelberg Cement. Heidelberg Cement, a global company headquartered in Germany, has put its Indian subsidiary on the market, which operates with a manufacturing capacity of 13.4 million tonnes per annum across various plants in India, including locations in Madhya Pradesh, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Maharashtra, Tamil Nadu, and Kerala. JSW Cement has initiated talks with Heidelberg Cement; however, Heidelberg?s exit strategy from India involves a comprehensive bidding process, according to a source familiar with the matter. Additionally, Heidelberg's Indian subsidiary, being a listed entity, must adhere to the due process outlined by the Securities and Exchange Board of India (SEBI) to safeguard investor interests. Operating challenges are mounting for foreign-owned cement companies in India, the world?s second-largest market, due to intensified competition and the necessity to invest significantly in decarbonisation projects. UltraTech, led by Kumar Mangalam Birla, plans to expand its capacity from 138 million tonnes per annum (mtpa) to 200 mtpa. The company has already doubled its grey cement production capacity from 66.3 mtpa in FY16 to 132.4 mtpa in FY23. UltraTech has commenced work on an additional capacity of 22.6 mtpa, investing Rs 130 billion in the expansion. Meanwhile, Adani Cement, under the leadership of billionaire Gautam Adani, acquired Ambuja Cements and ACC in India, owned by Switzerland-based Holcim. This strategic move propelled Adani Cement to become the country?s second-largest cement producer overnight. Combined, Ambuja and ACC have a capacity of 73 mtpa, with plans to increase it to 140 mtpa by FY?28. These debt-free companies generate revenue of Rs 400 billion and anticipate annual sales growth of 18-20%. It is noteworthy that Heidelberg Materials expanded its presence in the Indian market through acquisitions after entering India in 2006. The group acquired majority stakes in Mysore Cements and Cochin Cements. In 2008, Heidelberg Materials acquired the Indorama Cement joint venture, further solidifying its presence. The group augmented its capacity by 3 mtpa in Central India through brownfield expansion in 2013. Additionally, the acquisition of Italcementi in 2016 enabled the group to more than double its installed capacity, positioning it among the top 10 players in India. Heidelberg Materials sells its products under the Mycem and Zuari brands.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code