Analysts, who are betting on Holcim to maintain its lead in the cement business in the country, say the difference in ownership could be the key reason for the company for staying ahead.
"Holcim has an agressive attitude in acquiring assets in the country since its promoter driven. Lafarge, on the other hand, has a professional management," an analyst with a local brokerage said.
Holcim owns ACC, the country's leading cement maker, and Ambuja Cements, the third-largest local cement company.
The acquisitions, costing more than $1.6 billion, have helped Holcim corner close to quarter of the country's 189 million-tonne cement market. Lafarge, which entered India in 1999 by acquiring the cement division of Tata Steel and bought out Raymond's cem
ent facility in 2001, has a capacity of only 5.5
million tonnes.
Both global cement giants, which are concentrating on growing their business in the emerging markets because of a slowdown in growth in the US and other developed regions, get more than 40 per cent of their sales from emerging markets.
Holcim also plans to invest around Rs 10,000 crore (Rs 100 billion) in the next five years to set up plants and raise capacity by 15 million tonnes while Lafarge is doubling its capacity to 12 million tonnes by 2011.
Lafarge, the world's second-biggest cement maker, on Wednesday bought out L&T Concrete, the ready-mix cement concrete business of L&T to become the leader in the segment with 66 RMC units across the country.
However, Holcim, which is also in the segment because of its ownership in ACC, did not bid agressively and has only 21 RMC plants.
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