If successful, Holcim’s 
stake in ACL will stand at a level of 56% from the current level of 32%. It’s indeed extremely eccentric that the cement sector which was once nursed by the government has become the centre of gravity for players across the globe (Lafarge, Heidelberg etc), raisond’être? Well, the sector in a span of two decades has matured from dilapidated stage to a juncture where it has outclassed nations like the US and Japan to become the second largest cement producer, the largest being China. In the last decade, the sector registered a CAGR of 8%, at variance with the world’s average of 3.5% & 7.2% of China. For Holcim, this is the first phase, in the next phase, the company should focus on integrating its assets, de-bottlenecking of plants & on organic growth. All the Holcim entities have announced capex plans. Lastly but not the least, inorganic growth too will have its own importance. In this ferocious sector, where more than 60 MMT new capacities are coming up over three years, all laws, principles, emotions & so on, says ‘go for a kill or be killed’.
For Complete IIPM Article, Click on IIPM Article
stake in ACL will stand at a level of 56% from the current level of 32%. It’s indeed extremely eccentric that the cement sector which was once nursed by the government has become the centre of gravity for players across the globe (Lafarge, Heidelberg etc), raisond’être? Well, the sector in a span of two decades has matured from dilapidated stage to a juncture where it has outclassed nations like the US and Japan to become the second largest cement producer, the largest being China. In the last decade, the sector registered a CAGR of 8%, at variance with the world’s average of 3.5% & 7.2% of China. For Holcim, this is the first phase, in the next phase, the company should focus on integrating its assets, de-bottlenecking of plants & on organic growth. All the Holcim entities have announced capex plans. Lastly but not the least, inorganic growth too will have its own importance. In this ferocious sector, where more than 60 MMT new capacities are coming up over three years, all laws, principles, emotions & so on, says ‘go for a kill or be killed’.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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