NEW DELHI: Ambuja Cements Ltd (ACL), a part of the diversified Adani Group, on Thursday, announced the acquisition of Sanghi Industries Ltd (SIL) at an enterprise value of Rs 5,000 crore.
ACL will acquire 56.74% shares of SIL from its existing promoter group Ravi Sanghi & Family. The acquisition will be fully funded through internal accruals.
The acquisition of SIL will help Ambuja Cement strengthen its market leadership and increase its cement capacity to 73.6 MTPA from the current 67.5 MTPA.
“With this acquisition, the Adani Group is well on course to achieve its target of 140 MTPA of cement manufacturing capacity by 2028 ahead of time,” says Gautam Adani, Chairman of the Adani Group
“By joining hands with SIL, Ambuja is poised to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector,” Ambani said in a press release on Thursday.
He further said that with SIL’s limestone reserves of a billion tonnes, ACL will increase the cement capacity at Sanghipuram to 15 MTPA in the next two years.
ACL will also invest in expanding the captive port at Sanghipuram to handle larger vessels. Our aim is to make SIL the lowest-cost producer of Clinker in the country.
Sanghi Industries integrated manufacturing unit at Sanghipuram in Gujarat’s Kutch district is India’s largest single-location cement and clinker unit by capacity. With 2,700 hectares of land, the integrated unit has two kilns with a clinker production capacity of 6.6 MTPA and a cement grinding unit with a capacity of 6.1 MTPA. It has a captive power plant of 130 MW and a Waste Heat Recovery System of 13 MW. The unit is also connected to a captive jetty at Sanghipuram.
With the ongoing capex of 14 MTPA and with commissioning of 5.5 MTPA capacity at Dahej and Ametha by Q2 of FY24, the Adani Group’s capacity will be 101 MTPA by 2025.
Our vision is to produce lowest cost clinker in the country at Sanghipuram and then transport clinker as well as bulk cement through coastal route to the market of Saurashtra, South Gujarat, Mumbai and Mumbai Metropolitan region, Karnataka and Kerela, says Karan Adani, director, Ambuja Cement and CEO of Adani Ports and SEZ.
“Synergy with the assets of Adani ports will help us accelerate the implementation of this strategy. With the right implementation we are very confident that we would be the lowest-cost supplier of cement in all these markets,” he added.