Ambuja Cements acquires Sanghi Industries at an Enterprise Value of Rs 5,000 Cr
3 August, 2023 | Aditi
"This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey,” said Mr Gautam Adani, Chairman of the Adani Group.
- The acquisition will be fully funded through internal accruals.
- Sanghi Industries Ltd (SIL) has a clinker capacity of 6.6 MTPA (million tonnes per
annum), cement capacity of 6.1 MTPA and limestone reserves of 1 billion
- SIL’s Sanghipuram unit is India’s largest single-location cement and clinker unit
by capacity, with a captive jetty and captive power plant.
- With this acquisition, Ambuja Cements’ capacity will increase to 73.6 MTPA.
- Ambuja’s goal of 140 MTPA capacity by 2028 will be achieved ahead of time.
- Our aim is to make SIL lowest-cost producer of Clinker in the country.
- Ambuja will increase the cement capacity at Sanghipuram to 15 MTPA in the next
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% shares of SIL from its existing promoter group, Mr
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 Mr Gautam Adani, Chairman of the Adani Group. “By
joining hands with SIL, Ambuja is poised to expand its market presence, strengthen its
product portfolio, and reinforce its position as a leader in the construction materials
sector. 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.”
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 to 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 the 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
the port at Sanghipuram will be expanded to handle vessel sizes of 8,000 DWT (deadweight
tonnage). 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
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.