Holcim has entered into a strategic alliance with Gujarat Ambuja Cements to enter the growth market of India and also makes a public purchase offer to the shareholders of The Associated Cement Companies and Ambuja Cement Eastern.
Holcim has clearly been evaluating various ways of entering the Indian market for some time. The Board of Directors and Executive Committee have now decided to secure a foothold in the subcontinent by means of a long-term strategic alliance with a strong local partner, Gujarat Ambuja Cements Ltd (GACL). Under the alliance, the two partners aim to realise value-creating projects in India and jointly participate in the Indian cement industry’s dynamic market growth.
Fundamental to this alliance is the technical cooperation between a global Group which already has a strong presence in Asia and a local partner with outstanding manufacturing expertise, brand, and market presence in India. In addition to the exchange of experience in all areas of cement manufacturing, marketing, and exchange of managerial and technical talent, the partners also aim to strengthen their clinker and cement trading activities in South Asia, the Middle East and the region adjoining the Indian Ocean. In the future, Holcim also intends to use India as an additional base for its IT operations, R&D projects, as well as a procurement sourcing hub to generate additional synergies and value for the Group.