Ambuja Cements Ltd (ACL) has announced its acquisition of Sanghi Industries Ltd (SIL) in a deal valued at Rs 5,000 crore. The purchase is expected to strengthen Ambuja’s market presence and increase its cement capacity to 73.6 million tonnes per annum (MTPA).
The acquisition, fully funded through internal accruals, will see ACL take control of 56.74% shares of SIL from its existing promoter group. Gautam Adani, Chairman of the Adani Group, noted the deal as a crucial step in Ambuja’s growth journey, aiming to reach 140 MTPA capacity by 2028 ahead of schedule.
SIL’s Sanghipuram unit, India’s largest single-location cement and clinker unit, will become part of Ambuja’s portfolio, adding a clinker capacity of 6.6 MTPA and a cement capacity of 6.1 MTPA. Ambuja plans to expand cement capacity at Sanghipuram to 15 MTPA within two years and aims to make SIL the country’s lowest-cost clinker producer.
The acquisition will also bring SIL’s limestone reserves of 1 billion tonnes and captive jetty into Ambuja’s assets. Ambuja’s intent is to invest in expanding the captive port to handle larger vessels and reduce the cost of clinker and cement transportation through sea routes.
SIL’s presence extends across Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Kerala, and the acquisition will allow Ambuja to tap into these markets further. The deal will push the Adani Group’s capacity to 101 MTPA by 2025, making it a significant player in the cement industry.
