Adani Group Consolidates Position in Cement Industry, Acquires 56.74 Per Cent In Sanghi Industries

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.

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.

Also read: Explained: Adani's $10.5 Billion Ambuja Cement-ACC Acquisition