Ambuja Cements acquires Sanghi Industries to enhance cement production capacity


Ambuja Cements Limited (ACL), a key player in the cement and building material sector under the Adani Group, has successfully completed the acquisition of Sanghi Industries Limited (SIL) at an enterprise value of Rs. 5,185 crores. This acquisition marks a significant milestone in Ambuja Cements Limited’s growth journey and Adani Group’s commitment to India’s housing and infrastructure development.

Details of the Acquisition and Stakeholding

Funded entirely through internal accruals, Ambuja Cements Limited has acquired a controlling stake of 54.51% in Sanghi Industries Limited. This strategic move is expected to bring operational synergies, enhance efficiency, reduce costs, and maintain a sustainable approach to cement production.

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Sanghi Industries Limited’s Integrated Manufacturing Unit

Sanghi Industries Limited’s Sanghipuram unit, spanning 2,700 hectares, is India’s largest single-location cement and clinker production facility. It includes two kilns with a clinker production capacity of 6.6 MTPA, a cement grinding unit of 6.1 MTPA, a 13 MW captive power plant, and a 13 MW Waste Heat Recovery System. This unit also benefits from a dedicated captive jetty.

Adani Group's Ambuja Cements Expands Market Presence with Strategic Acquisition of Sanghi Industries

Adani Group’s Ambuja Cements Expands Market Presence with Strategic Acquisition of Sanghi Industries

Leveraging Coastal Strategy and Expansion Plans

The acquisition enables Ambuja Cements Limited to expedite its coastal strategy, aiming to increase cement capacity to 15 MTPA along the West Coast. This initiative will utilize the strengths of Ambuja and ACC brands, Adani Group’s ports and shipping expertise, and Sanghi Industries Limited’s low-cost clinker. Ambuja Cements Limited also plans to expand the existing captive port at Sanghipuram to handle larger vessels, contributing to national infrastructure development.

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Opportunities for Capacity Increase and Green Power

Sanghi Industries Limited provides immediate opportunities for low-cost debottlenecking, increasing clinker capacity by 0.5 MTPA and cement capacity by 1.5 MTPA. The unit also offers potential for green power generation, aiming to reach 45% through additional WHRS and solar/wind power.

CEO’s Statement on the Acquisition

Ajay Kapur, CEO of Ambuja Cements Limited’s Cement Business, emphasized the acquisition’s significance in solidifying Adani Group’s leadership in India’s cement industry. He highlighted the commitment to quality, customer service, and India’s infrastructure development. Plans to expand the Sanghipuram port’s capacity are in line with the company’s focus on environmental sustainability and customer-centric solutions.

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