Various sources coming out of Mumbai mention that Penna Cement has been looking for a strategic partner and is in discussions with a few people. However, it is widely believed that Cemex is in negotiations with the Indian company and the end result could see the Mexican company fulfilling its desire to enter the Indian cement market.
Penna operates three plants in Andhra Pradesh state with a total capacity of 5 million t and is currently setting up another plant in the same region.
Earlier this week Cemex disclosed that it had incurred a net loss of US$ 342 million during the first quarter of 2010. This has not detracted from the company’s aspirations of gaining a foothold in India.
This follows last week’s news that Vicat had acquired a 51% stake in Andhra Pradesh-based Bharathi Cement for an undisclosed sum.