Adani Group-owned Ambuja Cements Limited (ACL) on Tuesday announced the successful completion of the acquisition of Sanghi Industries Limited (SIL), at an enterprise value of Rs 5,185 crore. “This strategic acquisition, valued at an enterprise value of Rs 5,185 crore, enhances Ambuja Cement’s market presence underscoring Adani Group’s steadfast commitment to India’s housing and infrastructure development,” the company said in a regulatory filing.
With the acquisition funded entirely through internal accruals, Ambuja Cement holds a controlling stake of 54.51 per cent in SIL. “ACL is committed to leveraging operational synergies resulting from this acquisition to enhance efficiency, reduce costs, and maintain a sustainable approach to cement production,” it said.
SIL’s Sanghipuram 2,700-hectare integrated manufacturing facility comprises two kilns with an impressive 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 Heat Recovery System. The unit is seamlessly connected to a captive jetty in Sanghipuram.
“The acquisition of SIL, with its billion-tonne high quality surface mining limestone reserves, positions ACL to expedite its unique coastal strategy, aiming to increase the cement capacity to 15 MTPA along the West Coast on the strength of SIL’s low-cost clinker. This initiative will leverage the strengths of Ambuja and ACC brands, Adani Group’s expertise in ports and shipping, and the cost advantage of the Sanghipuram unit,” the company said.
ACL will 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 across Gujarat, Maharashtra, Karnataka and Kerala at a very competitive cost. This is expected to be commissioned over the next 30 months.
Furthermore, SIL provides an immediate opportunity for low-cost debottlenecking, increasing clinker capacity by 0.5 MTPA and cement capacity by 1.5 MTPA. The unit also offers potential for green power generation, reaching up to 45 per cent, incorporating an additional 12 MW WHRS and 30 MW of Solar/Wind power.
Ajay Kapur, CEO, Cement Business, said, “This acquisition represents a significant step forward in our journey solidifying Adani Group’s leadership position in India’s cement industry. It strengthens our commitment to delivering high-quality products and services to our customers while contributing to India’s infrastructure development. We welcome the employees of Sanghi Industries into the Adani family and look forward to capitalizing on the synergies this acquisition offers.
Plans are also underway to expand the Sanghipuram port’s capacity to handle larger vessels, facilitating cost-effective transportation of clinker and cement via sea routes. This strategic expansion aligns with the Company’s unwavering commitment to environmental sustainability.
“We are now better positioned to cater to diverse customer needs, offering a broader product range and innovative solutions for various construction requirements. We remain steadfast in our mission to build a sustainable future for India through responsible, innovative, and customer-centric solutions. The cost and geographic advantages of the 15 million tons coastal strategy will significantly strengthen the bottom line of ACL. The Company will continue to invest in cutting-edge technologies and best practices to ensure the highest quality standards and environmental stewardship,” said Ajay Kapur.