Adani Group's Ambuja Cements acquires Sanghi Industries for Rs 5,000 cr

The flagship company of Ravi Sanghi Group, Sanghi Industries produces and distributes cement under the brand name Sanghi Cement.

Ambuja Cements will acquire 56.74% shares of Sanghi Industries from its existing promoter group, Ravi Sanghi & family.

"The acquisition will be fully funded through internal accruals," Adani group said in a statement.

Adani Group Chairman Gautam Adani said termed the acquisition a “landmark and significant step forward in Ambuja Cements’ accelerating growth journey.”

The acquisition will enable Ambuja Cements to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector, he added.

"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 Adani.

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 with 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.

“Given the Adani Group’s strength in building and operating marine infrastructure, the port at Sanghipuram will be expanded to handle vessel sizes of 8,000 DWT (deadweight tonnage),” said the statement.

Bulk terminals and grinding units will be created along the western coast to enable movement of clinker and cement through the sea route at the lowest possible cost.

SIL also has a bulk cement terminal each at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra.

Most of the cement is transported through the sea route, which is environment-friendly and cost competitive.

SIL has a network of 850 dealers, with a market presence in Gujarat, Madhya Pradesh, Rajasthan, Maharashtra and Kerala, the press release said. 

(With UNI inputs)