Ambuja Cements Ltd (ACL), the cement and building material company of Adani Cement and part of the diversified Adani Group, today 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 & family. The acquisition will be fully funded through internal accruals.
“This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey,” said Gautam Adani, Chairman of the Adani Group.
This will be the first major acquisition by Adani Group, ever since Hindenburg Research accused the port-to-power conglomerate of stock manipulation and accounting fraud in a 24 January report.
SIL runs an integrated manufacturing unit at Sanghipuram in Gujarat’s Kutch district, with an annual production capacity of 6.6 million metric tons of clinker and and 6.1 million metric tons of cement.
The acquisition of SIL will help ACL to strengthen its market leadership and increase its cement capacity to 73.6 Million Tonnes Per Annum (MTPA) from the current 67.5 MTPA and will help it achieve target of 140 MTPA of cement manufacturing capacity by 2028 ahead of time.
With the ongoing capex of 14 MTPA and with commissioning of 5.5 MTPA capacity at Dahej and Ametha by the second quarter of FY24, the Adani Group’s capacity will be 101 MTPA by 2025.
The Adani Group is already the second biggest cement producer in the country after it acquired a controlling stake in Swiss giant Holcim's cement businesses in India in a $10.5 billion (Rs 80,000 crore) deal.
The company is next only to Aditya Birla group’s UltraTech Cement, which has a capacity of 138 MTPA.
An appeal from Swarajya
At Swarajya, we rely on our readers' support through subscriptions to sustain our media platform. Unlike larger conglomerates, we are unable to relentlessly chase advertising money — our model is largely built on your patronage.
Your support has never been more crucial. We work tirelessly to deliver 10-15 high-quality articles daily, ensuring you receive insightful content from 7 AM to 10 PM.
If you believe India's story has to be articulated in a way it has never been done before without shrugging it off, become a patron (or) subscribe now for ₹̶2̶4̶0̶0̶ ₹1999 and get 12 print issues, unlimited digital access for 1 year, a special India that is Bharat T-shirt (Offer ends soon).
We are counting on you!