Ambuja Cements boosts leadership with Sanghi Industries acquisition
Cement

Ambuja Cements boosts leadership with Sanghi Industries acquisition

"Ambuja Cements, one of the largest cement companies in India, has successfully acquired Sanghi Industries, a prominent cement manufacturer in western India, for an enterprise value of Rs 51.85 billion. Adani Group, which acquired a majority stake in Ambuja Cements in September 2022, now holds a controlling share of 54.51% in Sanghi Industries. The acquisition, fully financed through internal accruals, elevates Ambuja Cements' consolidated capacity from 68.5 MTPA to 74.6 MTPA.

Ajay Kapur, Chief Executive Officer of the Cement Business at Adani Group, emphasised the strategic significance of the acquisition in solidifying the group's leadership position in India's cement industry. He stated, ""This acquisition represents a significant step forward in our journey, strengthening our commitment to delivering high-quality products and services to our customers while contributing to India's infrastructure development.""

The acquisition grants Adani Group access to Sanghi Industries' Sanghipuram, a massive integrated manufacturing unit spread over 2,700 hectares in western Gujarat, recognised as India's largest single-location cement and clinker production facility. Sanghipuram features two kilns with a clinker production capacity of 6.6 MTPA, a cement grinding unit of 6.1 MTPA, a dedicated 13 MW captive power plant, and an efficient 13 MW waste facility, according to Adani Cement.

This strategic move enables Ambuja Cements to advance its unique coastal strategy, aiming to boost cement capacity to 15 MTPA along the west coast of India, leveraging Sanghi Industries' low-cost clinker. The initiative will harness the strengths of Ambuja and ACC brands, Adani Group's expertise in ports and shipping, and the cost advantages of the Sanghipuram unit.

Ambuja Cements plans to invest in expanding the existing captive port at Sanghipuram to accommodate larger vessels, contributing significantly to the nation's infrastructure development by meeting the growing demand for cement in Gujarat, Maharashtra, Karnataka, and Kerala at a competitive cost. The expansion is expected to be commissioned over the next 30 months.

Kapur highlighted that the cost and geographic advantages of the 15 million tons coastal strategy will enhance the bottom line of Ambuja Cements. The company remains committed to investing in cutting-edge technologies and best practices to ensure the highest quality standards and environmental stewardship."

Ambuja Cements, one of the largest cement companies in India, has successfully acquired Sanghi Industries, a prominent cement manufacturer in western India, for an enterprise value of Rs 51.85 billion. Adani Group, which acquired a majority stake in Ambuja Cements in September 2022, now holds a controlling share of 54.51% in Sanghi Industries. The acquisition, fully financed through internal accruals, elevates Ambuja Cements' consolidated capacity from 68.5 MTPA to 74.6 MTPA.Ajay Kapur, Chief Executive Officer of the Cement Business at Adani Group, emphasised the strategic significance of the acquisition in solidifying the group's leadership position in India's cement industry. He stated, This acquisition represents a significant step forward in our journey, strengthening our commitment to delivering high-quality products and services to our customers while contributing to India's infrastructure development.The acquisition grants Adani Group access to Sanghi Industries' Sanghipuram, a massive integrated manufacturing unit spread over 2,700 hectares in western Gujarat, recognised as India's largest single-location cement and clinker production facility. Sanghipuram features two kilns with a clinker production capacity of 6.6 MTPA, a cement grinding unit of 6.1 MTPA, a dedicated 13 MW captive power plant, and an efficient 13 MW waste facility, according to Adani Cement.This strategic move enables Ambuja Cements to advance its unique coastal strategy, aiming to boost cement capacity to 15 MTPA along the west coast of India, leveraging Sanghi Industries' low-cost clinker. The initiative will harness the strengths of Ambuja and ACC brands, Adani Group's expertise in ports and shipping, and the cost advantages of the Sanghipuram unit.Ambuja Cements plans to invest in expanding the existing captive port at Sanghipuram to accommodate larger vessels, contributing significantly to the nation's infrastructure development by meeting the growing demand for cement in Gujarat, Maharashtra, Karnataka, and Kerala at a competitive cost. The expansion is expected to be commissioned over the next 30 months.Kapur highlighted that the cost and geographic advantages of the 15 million tons coastal strategy will enhance the bottom line of Ambuja Cements. The company remains committed to investing in cutting-edge technologies and best practices to ensure the highest quality standards and environmental stewardship.

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