Cement industry worldwide is still going through a bad phase, with global majors like Lafarge and Heidelberg, among others, reported to be making disposals as the financial crisis crimped borrowing and construction.

The latest among these is Mexico?s Cemex SAB de CV, the world?s third largest cement producer, who on Monday sold its Australian operations to Holcim for A$2.02 billion ($1.61 billion). The sale includes Cemex?s 25% stake in Cement Australia .

The Mexican giant was viewing the Indian market with growing interest and was in talks with several Indian companies for acquisition, including Mehta Group?s Gujarat Sidhee Cement Ltd.

Besides this, between 2002 and 2004, Cemex was reported that it had twice opened talks with the Birla Group to acquire Mangalam Cement. However, differences over valuations hampered the talks.

However, the plans to enter into new geographies like India took a back seat for Cemex after it acquired Australia?s Rinker for a hefty $ 15.3 billion. This marked the largest cash takeover bid in Australian history, and Cemex?s most ambitious acquisition to date.

The company?s debt ballooned to $18.8 billion after it borrowed for the Rinker acquisition in July 2007. More than 80% of Rinker?s sales came from the US. A global recession soon after caused home construction to shrink in the US.

Says a Mumbai-based investment banker, ?Cemex is the only company among the world?s top five who is not present in India. And we don?t see Cemex entering India for another couple of years till it is able to revive from the slowdown,? he said, requesting anonymity.

Holcim, on the other hand, has a major presence in India through its stake in ACC Ltd and

Ambuja Cements Ltd which effectively gives it control of about 44.6 million tonnes per annum capacity and ranking it as a number one player in India. Cement industry in India is expected to grow at 9% in the current year, with 8.6% growth reported last year.

Cement MNC like Holcim, Lafarge, Heidelberg and Italcementi, who have a presence in India, are currently well placed to benefit from government spending on infrastructure programmes and demand in emerging countries.

ACC Ltd, in which Holcim has about 46% stake, while announcing its Q1 results, had said, ?Owing to brisk demand for cement emerging from rural housing and various infrastructural projects, India?s cement industry recorded a growth of 9% in the first quarter (Jan-Mar 2009).?