Ambuja Cements Limited (ACL), a key player in the Indian cement sector and part of the Adani Group, has acquired a 54.51% controlling stake in Sanghi Industries Limited (SIL) for an Enterprise Value of Rs. 5,185 crores (Rs 1 crore = $119,921). The transaction, completed today and internally funded through internal accruals, marks a significant expansion for ACL on India's West Coast.
The acquisition is a strategic component of ACL's coastal strategy, which focuses on enhancing its production efficiency. By integrating SIL’s extensive high-quality limestone reserves into its operations, ACL boosts its West Coast cement capacity to 15 million tonnes per annum (MTPA). The move is set to position ACL as one of the most cost-effective cement producers in the region, with plans to increase alternative fuel resources consumption up to 20% and introduce multifuel flexibility using locally sourced lignite.
Ajay Kapur, a representative of Ambuja Cements, underscored the importance of the acquisition stating it represents a leap forward in cement industry leadership and demonstrates the company's commitment to infrastructure development in India. In response to the announcement, Ambuja Cement’s stock value saw an uptick of 6.39 percent.
Looking ahead, ACL plans to further advance its coastal strategy by expanding operations at Sanghipuram’s captive port to accommodate larger vessels. The company is also set to enhance its green energy output by adding more Waste Heat Recovery Systems (WHRS) and expanding its solar and wind power sources, aligning with broader environmental sustainability goals.
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