Adani Group’s Ambuja Cements acquires stake in Sanghi Industries

Ambuja Cements Ltd (ACL), part of the diversified Adani Group, has announced the acquisition of a majority stake in Sanghi Industries Ltd (SIL) for an enterprise value of Rs 5,000 crore. This purchase marks a significant milestone in Ambuja Cement’s growth, positioning the company to expand its market presence and achieve its target of 140 MTPA of cement manufacturing capacity by 2028.

Details of the Acquisition

Ambuja Cements will acquire 56.74% shares of Sanghi Industries from its existing promoter group, Ravi Sanghi and family. The acquisition will be fully funded through internal accruals. Gautam Adani, Chairman of the Adani Group, said, “This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey.

By joining hands with Sanghi Industries, Ambuja Cements is poised to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector. With Sanghi Industries’ limestone reserves of a billion tonnes, Ambuja Cements will increase cement capacity at Sanghipuram to 15 MTPA in the next two years. Ambuja Cements 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.”

Adani Group’s Ambuja Cements acquires 57% stake in Sanghi Industries. Photo courtesy of Mayank.t86/Wikimedia Commons.

Features of Sanghi Industries Ltd (SIL)

Sanghi Industries’ integrated manufacturing unit at Sanghipuram in Gujarat‘s Kutch district is India‘s largest single-location cement and clinker unit by capacity. The unit includes two kilns with a clinker production capacity of 6.6 MTPA, a cement grinding unit of 6.1 MTPA, a captive power plant, and a captive jetty. The acquisition will enable Ambuja Cements to boost its cement capacity to 73.6 MTPA and increase the Adani Group’s capacity to 101 MTPA by 2025.

Further Expansion Plans

The Adani Group plans to expand the port at Sanghipuram to handle vessel sizes of 8,000 DWT (deadweight tonnage), create bulk terminals and grinding units along the western coast, and transport cement through environmentally friendly sea routes. SIL also has bulk cement terminals at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra and a network of 850 dealers.