Holcim mulls more quality assets buy in India

After acquiring majority stake in ACC and Ambuja Cements, Swiss cement major Holcim is open to more good quality assets buy in India. We are always open to acquisition. However, nothing is brewing, as of now," Onne van der Weijde, Holcim's Senior Vice President (South Asia) told PTI.
Weijde said that large capacity was not the prime criteria that Holcim was looking at, but the target company has to be a good fit into its existing portfolio.
"It has to be a good quality asset and a good fit into our portfolio," he said.
Holcim, the second-biggest player in the Indian market, has a combined annual capacity of more than 41 million tonnes through its Group companies, ACC and Ambuja Cements. It operates 24 plants in India.
ACC plans to increase its production capacity to 30.58 million tonnes a year in the next two years. Ambuja Cements produced 17.8 million tonnes of cement in 2008 and is on track to increase clinker capacity by 4.4 million tonnes by 2009-end.
Holcim has 46.21 per cent stake in ACC and 45.67 per cent stake in Ambuja Cements as on December 31, 2008.

Holcim plans to buy 20% more in Ambuja

Swiss giant Holcim plans to increase its stake in Ambuja Cements to over 51% as sky-high growth rates, soaring prices and demand in the world’s second-largest cement market make consolidation a business imperative.

The move values Ambuja, which has a capacity of about 16 million tonnes, at about Rs 23,433 crore or about $350 per tonne of cement. In contrast, rival Ultratech, with a 13 million tonne capacity, is valued at about $160 per tonne. Ambuja shares climbed 1.72% to Rs 132.75 on Thursday. The shares have risen 4.61% over the past week but have fallen 1.81% over the month.