- 05 Oct 2023
- ICICI Securities
ULTRATECH CEMENT AND ADANI CEMENT MAY JOIN THE RACE ALONG WITH JSW CEMENT TO ACQUIRE CEMENT ASSETS
HEIDELBERG - 201 Change: 2.61 (1.32 %)News: As per the news reports, UltraTech Cement and Adani Cement may join the race along with JSW Cement to acquire cement assets of Heidelberg Cement in India, put on the block by its parent Germany-headquartered Heidelberg Materials.
Views: HeidelbergCement India (listed entity) has total cement capacity of 6.26 million tonnes while at the group level, the total capacity 13.4 million tonnes in India. As per the news sources, Heidelberg’s India exit strategy would involve a detailed bidding process. We believe that consolidation in the Indian cement industry will pick up pace considering smaller players facing the increased competition led by capacity surplus across regions. Moreover, large players like UltraTech and Adani would continue to focus on maintaining or increasing their market shares. UltraTech Cement, which plans to enhance capacity to 200 mtpa from 138 mtpa and Adani Cement (Ambuja and ACC together) plans to increase total capacity to 140 mt by FY28 from 73 mtpa.
Views: Positive