Ambuja Cements Secures Majority Stake In Sanghi Industries, Boosts Adani’s Cement Empire
New Delhi, 2nd August 2023: According to two sources familiar with the matter, Ambuja Cements, an Indian cement company, has successfully acquired a majority stake in the operations of Sanghi Industries. The deal, which remains undisclosed in terms of the exact stake percentage, is expected to bolster the cement operations of billionaire Gautam Adani’s firm.
The formal announcement of the deal is likely to take place on Wednesday, although the sources preferred to remain anonymous as the decision is not yet public. The transaction was reportedly based on Sanghi’s enterprise value, which was assessed at 60 billion rupees ($729 million). Previously, the Indian Economic Times had reported that Adani was among the frontrunners in the race to acquire Sanghi Industries, with the company valued at the same enterprise value.
Despite requests for comments, Adani Group did not respond, and Sanghi Cement also declined to offer any remarks on the matter.
Notably, Adani is the second-largest cement producer in India, trailing only UltraTech Cement. The company owns both Ambuja and its subsidiary, ACC Ltd. Together, these entities possess a combined production capacity of over 65 million tonnes, with more than a dozen manufacturing plants scattered across India.
On the other hand, Sanghi Industries is a prominent cement manufacturer based in the Gujarat state of western India. Their website reveals an impressive annual production capacity of 6.1 million metric tonnes.
It is worth mentioning that the Adani Group had previously expressed cement as a key focus area, with intentions to explore various greenfield opportunities.
