Adani Cement acquires Sanghi Industries in west coast expansion

Adani Cement acquires Sanghi Industries in west coast expansion
06 December 2023

Adani Cement Ltd has secured a 54.51 per cent stake in Sanghi Industries and will look to harness operational synergies from this acquisition, according to the company. The primary objectives for the acquisition include boosting efficiency, minimising costs, and fostering a sustainable approach to cement production.

Sanghi Industries’ expansive Sanghipuram integrated manufacturing plant spans 2700ha, making it India's largest single-location cement and clinker production facility. The facility features two kilns with a clinker production capacity of 6.6Mta, alongside a dedicated 13MW captive power plant and a 13MW waste heat recovery system. Sanghi Industries will continue to sell its cement under the ACC Ltd brand. 

Shares in the Adani Group-owned Ambuja Cement rose nearly seven per cent to the day’s high of INR510.40 (US$6.12) on the National Stock Exchange of India (NSE) following the company's announcement of the acquisition. The share price of Sanghi Industries hit five per cent upper circuit, trading at INR129.90 per share. 

The acquisition of Sanghi Industries will strategically position Adani Cement to accelerate its coastal expansion plans, says Livemint. The objective is to enhance cement capacity to 15Mta along the west coast of India, leveraging Sanghi Industries’ cost-effective clinker, the company said in a statement. 

"This acquisition represents a significant step forward in our journey solidifying Adani Group’s leadership position in India's cement industry," said Ajay Kapur, CEO, cement business, Adani Group. “It strengthens our commitment to delivering high-quality products and services to our customers while contributing to India's infrastructure development. We welcome the employees of Sanghi Industries into the Adani family and look forward to capitalising on the synergies this acquisition offers."

Published under Cement News