Adani Cement to Acquire Sanghi Industries, Boosting Cement Capacity and Market Leadership

• ByStartupStory     |    August 3, 2023

Adani Cement to Acquire Gujarat’s Sanghi Industries in a Strategic Move. Ambuja Cements Set to Boost Market Leadership and Cement Capacity to 73.6 MTPA. Adani Group Aims for 140 MTPA Cement Manufacturing Capacity Ahead of Schedule.

Adani Cement (ACL), a prominent cement and building material company under the Adani Group, has announced its acquisition of Sanghi Industries Ltd., a cement manufacturer based in Gujarat. The deal entails acquiring 56.74% shares of Sanghi Industries from its existing promoter group, Ravi Sanghi and family, for an enterprise value of Rs 5,000 crore.

The acquisition is poised to strengthen Ambuja Cements’ market leadership, propelling its cement capacity to 73.6 MTPA from the current 67.5 MTPA, as confirmed in a statement. The combined potential of both companies presents an opportunity to establish the world’s largest clinker manufacturing complex, as expressed by Ravi Sanghi, Chairman and Managing Director of Sanghi Industries Limited.

“With pride in the exceptional assets developed at Sanghipuram, the combination of the two holds the potential to establish the world’s largest clinker manufacturing complex,” Ravi Sanghi, Chairman and Managing Director of Sanghi Industries Limited.

Sanghi Industries’ manufacturing facility at Sanghipuram in Kutch district, Gujarat, covers an extensive area of 2,700 hectares. The facility boasts two kilns with a clinker production capacity of 6.6 MTPA and a cement grinding unit capable of producing 6.1 MTPA.

“With this acquisition, the Adani Group is well on course to achieve its target of 140 MTPA of cement manufacturing capacity by 2028 ahead of time. With SIL’s limestone reserves of a billion tonnes, ACL will increase the cement capacity at Sanghipuram to 15 MTPA in the next two years. ACL will also invest in expanding the captive port at Sanghipuram to handle larger vessels. Our aim is to make SIL the lowest-cost producer of clinker in the country,” said Gautam Adani, Chairman of the Adani Group.

Gautam Adani, Chairman of the Adani Group, expressed his enthusiasm for the acquisition, stating that it will significantly contribute to achieving their target of 140 MTPA of cement manufacturing capacity by 2028, well ahead of schedule. Leveraging SIL’s substantial limestone reserves of a billion tonnes, ACL plans to raise cement capacity at Sanghipuram to 15 MTPA within the next two years. Furthermore, ACL will make strategic investments in expanding the captive port at Sanghipuram to accommodate larger vessels, with the ultimate goal of establishing SIL as the country’s lowest-cost producer of clinker.

Sanghi Industries has already expanded its reach through bulk cement terminals strategically positioned at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra. The company’s widespread distribution network includes 850 dealers, solidifying its market presence in key regions such as Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Kerala.

Ambuja Cement assured that the acquisition will be fully funded through internal accruals, showcasing the strength and confidence of the Adani Group in this strategic move.

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