Ambuja Cements Acquires Sanghi Industries
- Ambuja Cements Announces Acquisition of Sanghi Industries
- Strengthening Market Presence: Ambuja’s Strategic Move
- Sanghi Industries’ Impressive Capabilities and Facilities
- Ambuja’s Vision: Achieving 140 MTPA Capacity Ahead of Schedule
- Expanding Cement Capacity: Ambuja’s Next Steps
- Enhancing Marine Infrastructure: Adani Group’s Strengths
- Sustainable Transport Solutions for Cost-effective Operations
- Market Reach and Dealer Network of Sanghi Industries
- About Ambuja Cements Limited: India’s Leading Cement Company
Ahmedabad, 3 August 2023: Ambuja Cements Ltd (ACL), a prominent cement and building material company and part of the Adani Group, has made a significant stride in its growth journey with the announcement of its acquisition of Sanghi Industries Ltd (SIL) at an enterprise value of Rs 5,000 crore. The acquisition, fully funded through internal accruals, will see ACL acquire 56.74% shares of SIL from its existing promoter group, Mr. Ravi Sanghi & family.
Strengthening Market Presence: Ambuja’s Strategic Move
The acquisition of Sanghi Industries presents a golden opportunity for Ambuja Cements to expand its market presence, fortify its product portfolio, and reinforce its leadership in the construction materials sector. With SIL’s clinker capacity of 6.6 MTPA, cement capacity of 6.1 MTPA, and extensive limestone reserves of 1 billion tonnes, ACL will witness a considerable increase in its cement capacity to 73.6 MTPA.
Sanghi Industries’ Impressive Capabilities and Facilities
SIL’s integrated manufacturing unit at Sanghipuram, located in Gujarat’s Kutch district, stands as India’s largest single-location cement and clinker unit by capacity. Boasting two kilns with a clinker production capacity of 6.6 MTPA, a cement grinding unit with a capacity of 6.1 MTPA, a captive power plant of 130 MW, and a Waste Heat Recovery System of 13 MW, SIL’s facilities are both robust and eco-friendly. The unit’s connectivity to a captive jetty at Sanghipuram further adds to its efficiency.
Ambuja’s Vision: Achieving 140 MTPA Capacity Ahead of Schedule
Mr. Gautam Adani, Chairman of the Adani Group, expressed his enthusiasm about the acquisition, stating that it aligns perfectly with the Adani Group’s target of achieving 140 MTPA of cement manufacturing capacity by 2028, well ahead of the set timeline. With SIL’s limestone reserves of a billion tonnes, ACL is set to enhance cement capacity at Sanghipuram to 15 MTPA within the next two years. This achievement will expedite Ambuja’s goal of becoming the country’s lowest-cost producer of clinker.
Expanding Cement Capacity: Ambuja’s Next Steps
With ongoing capital expenditure leading to 14 MTPA capacity and upcoming commissioning of 5.5 MTPA at Dahej and Ametha by Q2 of FY24, the Adani Group’s overall capacity will reach 101 MTPA by 2025. This highlights the strategic importance of the Sanghi Industries acquisition, which propels Ambuja Cements closer to its ambitious goals.
Enhancing Marine Infrastructure: Adani Group’s Strengths
Leveraging the Adani Group’s expertise in building and operating marine infrastructure, the port at Sanghipuram will undergo expansion to handle vessel sizes of 8,000 DWT. Additionally, bulk terminals and grinding units along the western coast will facilitate cost-effective transportation of clinker and cement through the sea route.
Sustainable Transport Solutions for Cost-effective Operations
SIL’s existing bulk cement terminals at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra play a vital role in environment-friendly and competitive transport solutions. The sea route offers efficient transportation for cement shipments, benefiting both the company and the environment. SIL’s vast network of 850 dealers further enhances market presence in Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Kerala.
About Ambuja Cements Limited: India’s Leading Cement Company
Ambuja Cements Ltd (ACL), along with its subsidiary ACC Ltd, commands a cement manufacturing capacity of 67.5 MTPA, making it a prominent player in India’s cement industry. Recognized as India’s Most Trusted Cement Brand by TRA Research in its Brand Trust Report 2023, ACL is known for its innovative products, sustainable development projects, and environment-friendly practices. The company’s dedication to customer satisfaction is evident through initiatives like Ambuja Plus, Ambuja Cool Walls, Ambuja Compocem, and Ambuja Kawach, all under the umbrella of Ambuja Certified Technology.
