The Adani Group is in talks to buy the Indian cement operations of Germany's Heidelberg Materials in a deal that could be worth about $1.2 billion, the Economic Times reported on Monday, citing people familiar with the matter.
Adani Group, led by billionaire Gautam Adani, entered India's cement sector in 2022 by buying Holcim's local units and has made a string of acquisitions since then as it jostles with top cement producer UltraTech Cement for market share.
India's cement industry has seen increased deal-making since the Adani Group's foray, and as government spending has boosted demand from the housing and infrastructure sectors.
Adani Group and Heidelberg did not immediately respond to Reuters' requests for comment.
UltraTech and IPO-bound JSW Cement were also in the race for HeidelbergCement India, businessline had reported last year.
Heidelberg Materials entered India in 2006 with a series of domestic acquisitions and currently has four plants with a total capacity of 12.6 million tonnes per annum, according to its website.
Heavy competition over the last few quarters has led to the company losing market share in its mainstay central India market.
Heidelberg Cement India posted its first profit drop in five quarters in the three months to June as sales volume declined and a price cut weighed.
The company sells cement under two brands, Mycem and Zuari.