Adani Group Eyes $1.2 Billion Deal to Buy Heidelberg’s India Cement Business

The Adani Group is in talks to buy the Indian cement business of Germany’s Heidelberg Materials, according to insiders. The deal, valued at around $1.2 billion (₹10,000 crore), would be led by Ambuja Cements, an Adani Group company. If successful, this would further boost consolidation in India’s cement industry, which has seen rival UltraTech making similar acquisitions.

Adani entered the cement sector in 2022 by acquiring Holcim’s India operations. With this potential deal, they are aiming for quick closure, similar to their previous acquisition of Holcim. However, the group may back out if other bidders join the sale process, said one of the insiders.

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Heidelberg operates in India through its listed company, HeidelbergCement India, and an unlisted subsidiary, Zuari Cement. The company claims to have a production capacity of 14 million tonnes, though actual capacity could be less, potentially affecting the valuation.

Heidelberg has been present in India since 2006 after acquiring Mysore Cement, Cochin Cement, and a joint venture with Indorama Cement. The company expanded further after acquiring Italcementi in 2016, doubling its capacity in the country.

While Adani Cement aims to increase its capacity to 140 million tonnes by 2028, insiders say the real target is even higher. The company plans to invest around ₹40,000 crore over the next few years to expand its production capacity and infrastructure, according to rating agency Crisil.

This acquisition would add to Adani’s growing cement portfolio, which already includes Ambuja Cements, ACC, and recent buys like Penna Cement and Sanghi Industries.