“Adani Group’s Ambuja Cement Acquires Sanghi Industries, Set to Double Cement Capacity”
Ambuja Cement, a part of Adani Group, has acquired Sanghi Industries at an enterprise value of ₹5,000 crore, boosting its production capacity to 73.6 million tonnes per annum. Adani Group chairman Gautam Adani confirmed the commitment to double cement capacity by 2028, while the acquisition aligns with Ambuja’s goal to become the lowest cost producer of clinker in India.
Ambuja Cement, a subsidiary of the Adani Group, has announced the acquisition of Sanghi Industries at an enterprise value of ₹5,000 crore. This strategic move will bolster Ambuja Cement’s production capacity, reinforcing the group’s commitment to double its cement capacity by 2028.
Adani Group chairman, Gautam Adani, expressed his enthusiasm for the acquisition, stating that Ambuja Cement’s promise to double its cement capacity by 2028 remains on track. He took to social media, posting on X, formerly known as Twitter, to share the news of Sanghi Industries becoming part of the Adani portfolio. He further highlighted that Sanghi Cement, with its efficiency as India’s lowest cost clinker manufacturer, perfectly complements the coastal shipping and energy/logistics advantages of Ambuja Cement, especially in the Kutch region.
Sanghi Industries Limited (SIL), the acquired entity, boasts a clinker capacity of 6.6 million tonnes per annum, a cement capacity of 6.1 million tonnes per annum, and substantial limestone reserves of 1 billion tonnes. Its Sanghipuram unit is India’s largest single-location cement and clinker facility, featuring a captive jetty and captive power plant, making it a valuable addition to Ambuja Cement’s portfolio.
With this acquisition, Ambuja Cement’s production capacity will reach an impressive 73.6 million tonnes per annum. The company aims to further enhance its capabilities and reach a capacity of 140 million tonnes per annum by 2028, a target it is now poised to achieve ahead of schedule.
Ambuja Cement has set its sights on becoming the lowest cost producer of clinker in the country. The acquisition of Sanghi Industries is a strategic step in that direction. The company intends to elevate Sanghipuram’s cement capacity to 15 million tonnes per annum within the next two years, solidifying its position in the industry.
The acquisition has been fully funded through internal accruals, showcasing Ambuja Cement’s financial strength and commitment to sustainable growth. With the addition of Sanghi Industries, Ambuja Cement strengthens its foothold in the cement manufacturing sector and positions itself for further expansion in the highly competitive Indian market.
Sources By Agencies
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