Ambuja Cements acquires Sanghi Industries for Rs. 5,185 cr, Infra News, ET Infra - infrabuddy.com

Ambuja Cements acquires Sanghi Industries for Rs. 5,185 cr, Infra News, ET Infra

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MUMBAI: One of India’s largest cement companies, Ambuja Cements Ltd has completed the acquisition of Sanghi Industries Ltd , a major cement manufacturer in western India, for an enterprise value of Rs. 5,185 crores. Adani Group acquired a majority stake in Ambuja Cements in September 2022.

Ambuja Cements will now hold 54.51% controlling share in Sanghi Industries, with the acquisition being fully financed by internal accruals and increases Ambuja Cements’ consolidated capacity to 74.6 MTPA (million tonnes per annum) from 68.5 MTPA.

“This acquisition represents a significant step forward in our journey solidifying Adani Group’s leadership position in India’s cement industry. It strengthens our commitment to delivering high-quality products and services to our customers while contributing to India’s infrastructure development,” said Ajay Kapur, Chief Executive Officer, Cement Business, Adani Group.

The acquisition will give Adani Group access to Sanghi Industries’ Sanghipuram 2,700-hectare integrated manufacturing unit located in western Gujarat which is regarded as India’s largest single-location cement and clinker production facility. The facility comprises two kilns with a clinker production capacity of 6.6 MTPA (million tonnes per annum), a cement grinding unit of 6.1 MTPA, a dedicated 13 MW captive power plant and an efficient 13 MW waste, according to Adani Cement.

The acquisition will enable Adani Group’s Ambuja Cements to expedite its unique coastal strategy, aiming to increase the cement capacity to 15 MTPA along the west coast of India on the strength of Sanghi Industries’ low-cost clinker.

“This initiative will leverage the strengths of Ambuja and ACC brands, Adani Group’s expertise in ports and shipping, and the cost advantage of the Sanghipuram unit. ACL (Ambuja Cements) will invest in expanding the existing captive port at Sanghipuram to accommodate larger vessels, contributing significantly to the nation’s infrastructure development by meeting the growing demand for cement across Gujarat, Maharashtra, Karnataka and Kerala at a very competitive cost. This is expected to be commissioned over the next 30 months,” the statement said.

“The cost and geographic advantages of the 15 million tons coastal strategy will significantly strengthen the bottom line of ACL. The company will continue to invest in cutting-edge technologies and best practices to ensure the highest quality standards and environmental stewardship,” said Kapur.

On Tuesday, shares of Ambuja Cements closed 6.94% higher at Rs. 507.50 on the National Stock Exchange.

  • Published On Dec 5, 2023 at 08:32 PM IST

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