Ambuja Cements acquires Sanghi Industries at an enterprise value of Rs 5,000 crore

NEW DELHI: Ambuja Cements (ACL), the cement and building material company of Adani Cement and part of Adani Group, has acquired Sanghi Industries (SIL) at an enterprise value of Rs 5,000 crore.
ACL will acquire 56.74% shares of SIL from its existing promoter group, Ravi Sanghi & family. The acquisition will be fully funded through internal accruals. “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 lowest cost producer of clinker in the country,” said Gautam Adani, chairman, Adani Group.

With 2,700 hectares of land, SIL’s integrated manufacturing unit at Sanghipuram in Gujarat’s Kutch
district 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 acquisition of SIL will help ACL to increase its cement capacity to 73.6 MTPA from the current 67.5
MTPA. With the ongoing capex of 14 MTPA and with 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.
SIL also has a bulk cement terminal each at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra.
The company has a network of 850 dealers, with market presence in Gujarat, Madhya Pradesh, Rajasthan,
Maharashtra and Kerala.