New Delhi, August 2nd, 2023: Ambuja Cements, one of India’s leading cement companies, has successfully acquired a majority stake in the operations of Sanghi Industries, according to two reliable sources familiar with the matter. The undisclosed deal is expected to significantly strengthen the cement operations of billionaire Gautam Adani’s firm.
The formal announcement of the deal is anticipated to take place on Wednesday, but the sources preferred to remain anonymous as the decision is not yet public. The transaction was reportedly based on Sanghi Industries’ enterprise value, which was assessed at 60 billion rupees ($729 million). Earlier, the Indian Economic Times had reported that Adani was among the leading contenders in the race to acquire Sanghi Industries, with the company valued at the same enterprise value.
Despite requests for comments, the Adani Group did not respond, and Sanghi Cement also declined to offer any remarks on the matter.
Gautam Adani’s Adani Group is already the second-largest cement producer in India, second only to UltraTech Cement. The group owns both Ambuja Cements and its subsidiary, ACC Ltd. Together, these entities boast a combined production capacity of over 65 million tonnes, with more than a dozen manufacturing plants spread across India.
On the other hand, Sanghi Industries is a prominent cement manufacturer based in the Gujarat state of western India. According to their website, they have an impressive annual production capacity of 6.1 million metric tonnes.
It is noteworthy that the Adani Group had previously identified cement as a key focus area, with intentions to explore various greenfield opportunities in the sector.
The acquisition of a majority stake in Sanghi Industries is a strategic move by Ambuja Cements and the Adani Group to further strengthen their position in the Indian cement industry. As the demand for cement continues to rise with the growth of infrastructure projects and the construction sector in India, this move is expected to consolidate their presence and drive growth in the market.
The cement industry in India has been witnessing significant developments and investments, and this deal is a testament to the confidence of companies like Ambuja Cements and the Adani Group in the sector’s potential for future growth and success. With their combined expertise and resources, they are well-positioned to capitalize on the opportunities that lie ahead in India’s burgeoning cement market.
