Ambuja Cement expands portfolio with majority stake acquisition of Sanghi Industries

Ambuja Cements Ltd will acquire a substantial 56.74% promoter shareholding of Sanghi Industries Ltd, valued at Rs 5,000 crore.

Ambuja Cement expands portfolio with majority stake acquisition of Sanghi Industries

Thursday August 03, 2023,

2 min Read

Ambuja Cements Ltd (ACL), a cement and building material company belonging to Adani Cement, is acquiring Gujarat-based cement manufacturer Sanghi Industries Ltd.

The Adani company will acquire 56.74% shares of SIL from its existing promoter group, Ravi Sanghi and family, at an enterprise value of Rs 5,000 crore.

The acquisition will help Ambuja Cements strengthen its market leadership and increase its cement capacity to 73.6 MTPA (Million Tonnes Per Annum) from the current 67.5 MTPA, according to a statement.

“With pride in the exceptional assets developed at Sanghipuram, the combination of the two holds the potential to establish the world's largest clinker manufacturing complex," Ravi Sanghi, Chairman and Managing Director of Sanghi Industries Limited.

SIL's manufacturing facility at Sanghipuram in Kutch district, Gujarat, spans 2,700 hectares of land. This integrated plant features two kilns with a clinker production capacity of 6.6 MTPA and a cement grinding unit capable of producing 6.1 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. With SIL’s limestone reserves of a billion tonnes, ACL will increase 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," said Gautam Adani, Chairman of the Adani Group.

SIL has expanded its reach with bulk cement terminals strategically located at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra.

The company's distribution network comprises 850 dealers, giving it a strong market presence in key regions like Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Kerala.

Ambuja Cement said that the acquisition will be fully funded through internal accruals

Edited by Affirunisa Kankudti