Ambuja Cements Ltd, the cement and building material company of Adani Cement and part of the Adani Group, has announced its acquisition of Sanghi Industries Ltd (SIL) in a significant deal valued at Rs 5,000 crore. The acquisition will see Ambuja Cements acquire 56.74% of SIL shares from its existing promoter group, Ravi Sanghi and his family. Funding for the acquisition will be fully provided by internal accruals.
Gautam Adani, Chairman of the Adani Group, expressed that this acquisition marks a significant milestone in Ambuja Cements’ growth journey. He stated that by joining forces with SIL, Ambuja Cements is poised to expand its market presence, enhance its product portfolio, and solidify its position as a leader in the construction materials sector. Adani further revealed that ACL plans to invest in expanding the captive port at Sanghipuram to accommodate larger vessels. The goal is to establish SIL as the country’s lowest-cost producer of Clinker.
SIL’s integrated manufacturing unit, located in Sanghipuram in Gujarat’s Kutch district, boasts the largest single-location cement and clinker unit in India in terms of capacity. With a vast land area of 2,700 hectares, the unit comprises two kilns with a clinker production capacity of 6.6 MTPA and a cement grinding unit with a capacity of 6.1 MTPA. Additionally, it possesses a captive power plant generating 130 MW and a Waste Heat Recovery System of 13 MW. The unit is seamlessly connected to a captive jetty at Sanghipuram.
The acquisition of SIL will enable ACL to reinforce its market leadership and increase its cement capacity from the current 67.5 MTPA to 73.6 MTPA. The company also mentioned in a statement that with ongoing capital expenditures of 14 MTPA, in addition to the commissioning of 5.5 MTPA capacity at Dahej and Ametha by the second quarter of FY24, the Adani Group’s overall capacity is projected to reach 101 MTPA by 2025.
This strategic acquisition positions Ambuja Cements as a major player in the cement industry, strengthening its growth trajectory and expanding its market reach. With the increased capacity and product portfolio, Ambuja Cements is well-positioned to meet the growing demands of the construction sector in India.
