Ambuja Cement, an integral part of the Adani Group, has recently made a significant stride in its growth strategy with the acquisition of Sanghi Industries at an enterprise value of ₹5,000 crore. This strategic move aligns with Ambuja Cement’s commitment to doubling its cement capacity by 2028, a goal which Adani Group Chairman Gautam Adani assures is on track.
Gautam Adani shared his excitement about the acquisition and its implications for Ambuja Cement’s expansion plans via his social media account on X (formerly known as Twitter). He emphasized the addition of Sanghi Industries as India’s most efficient and lowest-cost clinker manufacturer to the Adani portfolio. By integrating Sanghi Cement, based in the Kutch region and making the most of coastal shipping advantages along with energy and logistics benefits, Ambuja Cement aims to bolster Sanghipuram’s cement capacity, doubling it to 15 million tonnes per annum.
The acquisition of Sanghi Industries Limited brings in substantial benefits. SIL boasts a clinker capacity of 6.6 million tonnes per annum, a cement capacity of 6.1 million tonnes per annum, and impressive limestone reserves of 1 billion tonnes. Notably, Sanghipuram stands as India’s largest single-location cement and clinker unit, complete with a captive jetty and captive power plant.
With this strategic move, Ambuja Cement’s production capacity now reaches an impressive 73.6 million tonnes per annum. Moreover, the company is optimistic about achieving its goal of reaching 140 million tonnes per annum capacity by 2028 even before the set timeline. Ambuja Cement is determined to transform SIL into the country’s lowest-cost producer of clinker, and they plan to achieve this by increasing the cement capacity at Sanghipuram to 15 million tonnes per annum within the next two years.
Worth noting is the fact that Ambuja Cement’s acquisition of Sanghi Industries is fully funded through internal accruals, showcasing the company’s financial strength and stability.
Overall, this acquisition marks a major milestone for Ambuja Cement’s expansion strategy and positions the company as a key player in the cement industry, well on its way to achieving its ambitious growth targets.