CRH exploring Indian acquisition
By Chris Sleight08 August 2012
CRH has confirmed rumours that it is in negotiations that may lead to the acquisition of a stake in Jaypee Group's cement business in Gujarat, India. As well as being active in the cement sector, the Jaypee Group includes Jaiprakash Associates, one of India's largest contractors.
The assets being discussed include a 3.6 million tonne per year clinker plant in Klutch, western Gujarat, which sits with a 2.4 million tonnes per year grinding plant. There is also a 2.4 million tonnes per year grinding plant in eastern Gujarat.
According to CRH, Jaypee Group is the third largest cement producer in India, with a capacity of 28.8 million tonnes per year. The group had sales last year of INR 138 billion (US$ 2.5 billion).
CRH is one of five global heavy materials producers with revenues over US$ 10 billion per year. However, unlike its peer group of Cemex, Heidelberg Cement, Holcim and Lafarge, its focus is more on aggregates than cement. Its cement production last year was 15.6 million tonnes, compared to Lafarge's 145.6 million tonnes. However, with aggregate production of 170 million tonnes, its output in this area is greater than Cemex's and on a par with Holcim's. Lafarge and Heidelberg Cement have larger aggregates operations.