JSW Group joins the race for Holcim in India

The race for the acquisition of a controlling stake in Holcim Group’s cement businesses in India is intensifying, with JSW Group lining up an array of private equity firms and lenders to fund the deal. The move follows a similar arrangement by the Adani Group, helmed by billionaire Gautam Adani, which is also in discussions with a number of global lenders.

JSW Group has reportedly received assurances for funds of up to US$11bn from PE firms and lenders, including American PE major Carlyle Group, Advent International and Apollo Private Equity Investment. A number of Indian and foreign lenders have also promised support by way of loans, if required, according to a number of sources.

JSW Group, which has an installed capacity of 16Mta plans to increase this to 25Mta by FY24. If successful, the acquisition would propel the group to the position of second-largest cement manufacturer in the country. Adani Group, which does not have a presence in cement, is also believed to be exploring the sector. The group was planning to set up a 5Mta cement manufacturing facility in the Raigad district of Maharashtra.  

Holcim, which has been disposing of non-core assets across certain territories, holds a 63.1 per cent stake in Ambuja Cements, which has an installed capacity of 31.54Mta, and a 4.48 per cent stake in ACC, while Ambuja, Holcim’s flagship entity in India, holds a 50.05 per cent stake in ACC.