UltraTech Cement, a flagship company of the Aditya Birla Group and India’s largest cement manufacturer in terms of capacity, is reportedly in advanced discussions to acquire the Indian operations of HeidelbergCement, according to sources cited by Moneycontrol. The deal could involve Heidelberg Materials Group’s 69.39 per cent stake in HeidelbergCement India Ltd, valued at around Rs 3,381 crore based on the January 24 closing price.
The acquisition aligns with UltraTech’s strategy of pursuing inorganic growth amid increasing competition in the cement industry.
UltraTech has actively pursued acquisitions to strengthen its market position. In 2024, it acquired a 55.49 per cent stake in India Cements through multiple transactions, including an open offer to public shareholders. Additionally, in December 2024, the company purchased an 8.69 per cent stake in Star Cement for Rs 851 crore.
Top cement manufacturers
The Indian cement sector is facing heightened competition, driven by capacity expansions and aggressive consolidation efforts. In the past five years, leading companies have secured almost 97 million tons per annum (MTPA) through mergers and acquisitions, while only 51-53 MTPA was added through organic growth.
Adani Group’s acquisition of Ambuja Cements and ACC Limited in 2022 marked one of the largest deals in the Indian cement industry. The deal, valued at $6.6 billion, was completed through Adani’s purchase of Holcim’s stake in the two companies. This acquisition enabled Adani to become the second-largest cement manufacturer in India with a combined capacity exceeding 73.6 MTPA, trailing only UltraTech Cement, which has a capacity of over 120 MTPA. The company plans to increase its capacity to 140 MTPA in the next five years.
JSW Group is also a significant player in the cement industry through its subsidiary JSW Cement. The company has been aggressively expanding its footprint in the cement market. JSW Cement’s production capacity, which currently stands at approximately 19 million tonnes per annum (MTPA) as of 2024, has set a target to expand its capacity to 60 MTPA by 2029-30.
HeidelbergCement India
Heidelberg Materials Group entered the Indian market in 2006 by acquiring Mysore Cements and fully consolidated its stake by 2008. The company expanded its capacity to 5.4 million tonnes per annum (MTPA) by 2009 and now operates with an installed capacity of 14 MTPA, including four integrated plants, four grinding units, and a terminal. In the financial year 2023-24, HeidelbergCement India reported revenue of Rs 2,420.3 crore, a 6 per cent year-on-year increase, and a net profit of Rs 167.7 crore, marking a 69 per cent rise from the previous financial year.
