Adani Group-owned Ambuja Cements has completed the acquisition of Sanghi Industries for an enterprise value of ₹5,185 crore, boosting the port-to-data centre conglomerate’s total cement production capacity to nearly 75 million tonnes per annum (MTPA).
Ambuja Cements bought about 133 million shares of Sanghi Industries worth ₹1,627 crore in a block deal on NSE on Tuesday. The shares were purchased at ₹121.9 apiece. The sellers included Sanghi Industries promoters Alok Sanghi, Aditya Sanghi, Sanghi Polymers and Samruddhi Investors Services, among others. Ambuja Cements also purchased around 7.3 million shares of Sanghi Industries through off-market trade, bringing its total stake in the target company to nearly 141 million shares, representing a 54.51% stake.
The transaction was funded through internal accruals, according to a statement from Adani Cements, a subsidiary of the Adani Group. Following the deal, the Adani Group comprises three listed cement makers including ACC Ltd.
Adani Cements is the second largest cement maker in India, behind UltraTech Cement, which has almost doubled its cement manufacturing capacity to nearly 138 MTPA. The deal gave the Adani Group clinker capacity of 6.6 MTPA, cement capacity of 6.1 MTPA and 1 billion tonnes of limestone reserves. Sanghi Cements’ 2,700-hectare Sanghipuram unit is India’s largest single-location cement and clinker production facility. It comprises two kilns, a dedicated 13 MW captive power plant and a 13 MW waste heat recovery system. The facility is connected to a captive jetty, aiding in seamless logistics.
“The acquisition of SIL positions (Adani Cements) to expedite its unique coastal strategy, aiming to increase the cement capacity to 15 MTPA along the West Coast on the strength of (Sanghi Industries’) low-cost clinker,” according to the statement. “Adani Cements is committed to leveraging operational synergies resulting from this acquisition to enhance efficiency, reduce costs, and maintain a sustainable approach to cement production.”
Source: Economic Times