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In a significant move that underscores Ambuja Cement’s ambitious growth strategy, the company, a subsidiary of the Adani Group, has successfully acquired Sanghi Industries at an enterprise value of ₹5,000 crore. Following the acquisition, Gautam Adani, the Chairman of Adani Group, has reaffirmed Ambuja Cement’s commitment to doubling its cement capacity by the year 2028.
Gautam Adani took to X, formerly known as Twitter, to share his excitement about the acquisition and the alignment of strategies. He stated, “Promise to double our cement capacity by 2028 on track. Delighted to announce addition of @CementSanghi, India’s most efficient / lowest cost clinker manufacturer to Adani portfolio. As part of @AmbujaCementACL, Sanghi Cement (in our karmabhoomi Kutch) significantly leverages our coastal shipping (+ energy/logistics) advantages. Sanghipuram cement capacity to double to 15 MTPA.”
Ambuja Cement’s announcement emphasized that the acquisition has been financed entirely through internal accruals. Sanghi Industries Limited (SIL), the target of the acquisition, boasts an impressive clinker capacity of 6.6 million tonnes per annum, a cement capacity of 6.1 million tonnes per annum, and substantial limestone reserves amounting to 1 billion tonne.
SIL’s distinguished Sanghipuram unit holds the distinction of being India’s largest single-location cement and clinker unit based on capacity. This facility comes complete with a captive jetty and a captive power plant, further augmenting its operational capabilities. With the successful acquisition of Sanghi Industries, Ambuja Cement’s overall production capacity has now surged to an impressive 73.6 million tonnes per annum.
Ambuja Cement’s official statement echoed the company’s robust aspirations, highlighting the drive to achieve a remarkable capacity of 140 million tonnes per annum well ahead of the targeted year 2028. Furthermore, the statement outlined the strategic vision to position SIL as the nation’s most cost-effective clinker producer. Ambuja Cement’s strategic plans also encompass a strategic expansion of the cement capacity at the Sanghipuram unit to an impressive 15 MTPA within the next two years.
This move not only solidifies Ambuja Cement’s position within the industry but also underscores the Adani Group’s commitment to bolstering the growth trajectory of its portfolio companies. As Ambuja Cement furthers its expansion endeavors, the acquisition of Sanghi Industries serves as a significant milestone, contributing to India’s cement manufacturing prowess and reinforcing the nation’s economic landscape.
In summary, Ambuja Cement’s acquisition of Sanghi Industries marks a significant stride in the company’s pursuit of cement production excellence and capacity expansion. With ambitious targets set for the coming years, the Adani Group’s commitment to advancing India’s industrial landscape remains resolute.
