Adani Group will increase the capacity of SIL's captive port at Sanghipuram to handle large ships

3 Aug 2023 , 02:37 AM

According to Karan Adani, CEO of Adani Ports and Special Economic Zones (APSEZ), the Adani Group will invest in expanding Sanghipuram’s captive port’s capability to accommodate vessels up to 8,000 DWT (deadweight tonnes).

Ambuja Cements, a subsidiary of the Adani Group, announced on Thursday that it will pay Rs 5,000 crore for the majority of Sanghi Industries Ltd (SIL), one of the top cement producers in western India.

As per the agreement, Ravi Sanghi & family will sell their 56.74% stake in SIL to Ambuja Cements, a division of Adani Cement, which manages the cement division of port-to-power conglomerate Adani Group.

In Gujarat’s Kutch area, Sanghi Cement has a manufacturing facility at Sanghipuram that is also connected to a captive jetty there. It has a cement plant with a capacity of 6.1 MTPA and a clinker plant with a capacity of 6.6 MTPA.

Following the purchase of Sanghi Industries, Karan Adani stated to ET, ‘We will also invest in deepening and expanding the captive port capacity in order to accommodate larger vessel sizes of 8000 DWT.’

To carry clinker and cement through the sea route as cheaply as feasible, bulk terminals and grinding facilities will be built along the western coast.

With a captive jetty and a captive power plant, Sanghi Cement’s Sanghipuram mill is India’s largest single-location cement and clinker unit by capacity.

Adani Cement Ltd. (ACL), the second-largest producer after UltraTech, will benefit from the agreement by increasing its capacity to 73.6 MTPA (Million Tonnes Per Annum) in the market it entered last September after buying the majority interests in Ambuja Cement and its subsidiary ACC Ltd.

‘The acquisition of Sanghi industries will help Ambuja to strengthen its market leadership and increase its cement capacity to 73.6 MTPA from the current capacity of 67.5 MTPA,’ the executive added.

The Adani group’s capacity will be 100.1 MTPA by 2025 thanks to continuing expenditure of 14 MTPA and the commissioning of 5.5 MTPA cement capacity at Dhaez and Ametha in the second quarter of FY23.

‘Ambuja Cement is on track to reach its target of 140 MTPA capacity by 2028. We are certain that we will do this ahead of schedule thanks to this acquisition, he continued.

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