Tanveer Singh Kapoor, Pune
Ambuja Cements Ltd (ACL), the cement and building material company, on Thursday, August 3, acquired Sanghi Industries Ltd (SIL) for Rs 5,000 crore.
ACL will acquire 56.74% shares of SIL from Ravi Sanghi and family, its existing promoter group. According to an official statement, the acquisition will be funded through internal accruals.
Gautam Adani, Chairman, Adani Group, considers this acquisition a significant step forward in Ambuja Cements’ accelerating growth journey. He added that Ambuja is poised to expand its presence in the market, bolster its product portfolio, and reinforce its position as a leader in its sector.
Located in Sanghipuram in Gujarat’s Kutch district, SIL’s integrated manufacturing unit is India’s largest single-location cement and clinker unit by capacity. The unit has two kilns along with a clinker production capacity of 6.6 MTPA and a cement grinding unit with a capacity of 6.1 MTPA, with 2,700 hectares of land. It comprises a 130 MW captive power plant and a 13 MW Waste Heat Recovery System. Additionally, it has a connection to Sanghipuram’s captive jetty.
This acquisition will help Ambuja Cements strengthen its market leadership, increasing its cement capacity to 73.6 MTPA from the current 67.5 MTPA. The Adani Group’s capacity will reach 101 MTPA by 2025, with the continuing expenditure of 14 MTPA and the commissioning of 5.5 MTPA capacity at Dahej and Ametha by Q2 of FY24.
Given the Adani Group’s expertise in constructing and operating maritime infrastructure, the port at Sanghipuram will be enlarged to accommodate vessels up to 8,000 DWT (deadweight tonnage). Bulk terminals and grinding plants will be built along the western coast to allow for the most cost-effective transfer of clinker and cement by sea.
Sanghi Industries also operates bulk cement terminals at Gujarat’s Navlakhi Port and Maharashtra’s Dharamtar Port. The majority of cement is carried by water, which is both environmentally benign and financially effective. According to the statement, SIL has 850 dealers and a market presence across Gujarat, Maharashtra, Madhya Pradesh, Kerala and Rajasthan.