Ambuja Cements, the cement and building materials arm of the Adani Group, has announced the acquisition of Sanghi Industries (SIL) for an enterprise value of Rs 5,000 crore. Ambuja Cements will acquire 56.74 per cent stake in Sanghi Industries from subsequent promoter group Ravi Sanghi and family. The acquisition will be financed entirely through internal revenue, the company said in a release.
Commenting on the acquisition of Ambuja’s Sanghi Industries, Adani Group Chairman Gautam Adani said the acquisition is aimed at expanding Ambuja’s market presence and strengthening its product portfolio. Adani also noted that the Adani Group is on track to achieve its target cement production capacity of 140 MTPA by 2028 ahead of schedule.
“By joining hands with SIL, Ambuja is poised to expand its market presence, strengthen its product portfolio and strengthen its position as a leader in the construction materials sector. With this acquisition, Adani Group can achieve its target of 140 MTPA cement production capacity by 2028,” Adani said.
He added that Ambuja Cement will increase its capacity at its plant at Sanghipuram in Gujarat’s Kutch district to 15 MTPA to reserve one billion tonnes of limestone from Sanghi Industries. Adani also said that Ambuja Cement will also invest in expanding the captive port at Sanghipuram for larger shipping operations.
The Adani Group chairman said the company aims to make Sanghi Industries the lowest-cost producer of clinker used in cement production in the country. SIL’s integrated manufacturing unit at Sanghipuram is the largest single-location cement and clinker unit in India by capacity. This unit is also connected to a captive jetty at Sanghipuram.
