Ambuja Cements to Acquire Sanghi Industries

3 Aug 2023 , 01:19 PM

Ambuja Cements, India’s second-largest cement manufacturer, announces the acquisition of Gujarat-based cement maker Sanghi Industries (SIL) on August 3. The deal involves Ambuja Cements acquiring 56.74 % shares of SIL from its promoters, Ravi Sanghi, and family, at a price of Rs 114.22 per share, valuing the company at an enterprise value of Rs 5,000 crore.

The entire acquisition will be funded through internal accruals, showcasing Ambuja Cements’ strong financial position.

Gautam Adani, Chairman of the Adani Group, expresses his enthusiasm for the acquisition, stating it is a significant step in Ambuja Cements’ growth journey.

The acquisition is expected to enhance Ambuja’s market presence, strengthen its product portfolio, and consolidate its position in the construction materials sector.

This marks the third major acquisition in the cement sector by the Adani Group after Ambuja and ACC cements in 2022. With the addition of Sanghi Industries, Ambuja Cements’ aggregate cement production capacity is expected to increase by 9 % to 73.6 million tonnes per annum.

Ambuja Cements also plans to expand the captive port at Sanghipuram to handle larger vessels, improving transportation efficiency. The deal provides Ambuja Cements access to Sanghi’s limestone reserve of nearly a billion tonnes, boosting its production capabilities.

Karan Adani, CEO of Adani Ports and SEZ Limited, shares the vision to increase cement production capacity at Sanghipuram to 15 million tonnes per annum. Ambuja Cements aims to become the lowest-cost suppliers of cement in Gujarat, Maharashtra, and Karnataka, leveraging the acquisition’s benefits.

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