LafargeHolcim-owned Ambuja Cement is looking to acquire capacity in ready-mix concrete (RMC) and aggregates business to fuel growth, according to The Business Standard, citing a company official.
Analysts see the move as a step towards being a building materials company and not solely a cement maker. “Globally, cement giants have looked at developing a building materials image and not just as a cement manufacturer and the focus of Ambuja (Holcim Group) appears to be on similar lines. The focus for Ambuja looks to be on similar lines,” said Nitin Bhasin, head of research institutional equities – at Ambit Capital.
However, the company may face challenges finding RMC acquisition opportunities. However, RMC capacity in India, beyond top 6-7 players is largely unorganised, so it will be difficult for a Holcim entity to make acquisitions in such a market. In addition, the company has so far been behind in term of deploying growth capital as the Rajashtan greenfield expansion is yet to commence,” Mr Bhasin added.
