AMBUJA CEMENT IS IN TALK TO ACQUIRE INDIAN OPERATION OF HEIDELBERG CEMENT INDIA
News: As per media sources, Ambuja Cement is in talks to acquire Indian operation of Heidelberg at an estimated cost of Rs 10000 crores for 14 mtpa. Heidelberg Cement India has operations in Central India (MP & UP) & in Southern India (Karnataka).
Views: At an acquisition cost of $85/ton has been in-line with earlier acquisition in the industry considering the current capex cost of $120/ton with 2-2.5 years of commissioning time. Ambuja Cement’s total capacity stands at 89 mtpa (in process of further expansion of 51.4 mtpa) with an aim to reach a target capacity of 140 mtpa by FY28E. Ambuja Cement has a strong balance sheet with cash & bank balance of Rs ~18300 crores as on 30th June-24.
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