Heidelberg Materials is in talks with Adani Group to sell its cement business in India

Heidelberg Materials' Indian cement business is getting a lot of attention

Photo: DPA

According to media reports, Heidelberg Materials is in talks with Indian company Adani to sell its cement business in India. The media, citing insiders, reported that the deal could be worth $1.2 billion. According to previous media reports, UltraTech and JSW Cement are also interested in the company's Indian business Heidelberg Cement India. Shares of the DAX member group opened more than 3% higher on Monday on the

news. Shares of Heidelberg Cement India, Heidelberg's Indian unit, had risen more than 14% to $675 million. India's cement industry is experiencing growing demand

due to increased government spending on housing and infrastructure. However, the recent price pressure has led to a decline in profits in the second quarter of Heidelberg Materials. The market is changing in terms of acquisitions. Billionaire Gautam Adani's Adani Group bought the Indian division of Swiss cement giant Holcim two years ago and has since acquired several local companies.

Heidelberg Materials entered the Indian market in 2006 through a number of acquisitions. It currently operates four cement plants in India with a capacity of 12.5 million tonnes. Indian cement plants accounted for 7% of the total capacity of the building materials company last year, which also produces sand, gravel and additives such as concrete. In the cement industry, Heidelberg Materials ranks fourth in the world, behind two Chinese manufacturers ( Conch Cement and CNBM) and the Holcim Group of Switzerland.

At its most recent analyst meeting in July, Chief Executive Dominik von Achten said India's market position was not yet perfect. In view of the consolidation trend, Heidelberg Materials remains flexible and is investigating all options, including further investment.