Ambuja Cements acquires Sanghi Industries at of Rs 5,000 cr – ET Infra

AHMEDABAD: Ambuja Cements Ltd (ACL), the cement and building material company of AdCement and 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 per cent shares of SIL from its existing promoter group, Ravi Sanghi and his family. The acquisition will be fully funded through internal accruals.

Gautam Adani, Chairman of the Adani Group said that this acquisition is a significant step forward in the growth journey of Ambuja Cements.

“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,” he said.

“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,” he added.

SIL’s 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.

The acquisition of SIL will help ACL to strengthen its market leadership and increase its cement capacity to 73.6 MTPA from the current 67.5 MTPA. 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, the company said in a statement. (ANI)

  • Published On Aug 3, 2023 at 12:15 PM IST

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