M&A

M&A

Ambuja Cements to acquire controlling stake in Sanghi Industries at Rs.5,000-Cr valuation

BSE Disclosure  

Adani Group controlled Ambuja Cements Ltd (ACL) is to acquire fellow publicly listed Sanghi Industries Ltd (SIL) at an enterprise value of INR 5,000 crore. ACL will acquire 56.74% stake in SIL from the promoter group, consisting of Ravi Sanghi and family and make an open offer for another 26% (at INR 114.22 per equity share) from the public shareholders of Sanghi Industries. The acquisition will be fully funded through internal accruals. The turnover for the target company for FY23 was INR 928.36 crore, lower than the FY22 figure of INR 1,129.42 crore. SIL's integrated manufacturing unit at Sanghipuram in Gujarat's Kutch district is India's largest single-location cement and clinker unit by capacity. With 2,700 hectares of land, the integrated unit has two kilns with a clinker production capacity of 6.6 MTPA and a cement grinding unit with a capacity of 6.1 MTPA. It has a captive power plant of 130 MW and a Waste Heat Recovery System of 13 MW. The unit is also connected with a captive jetty at Sanghipuram. The acquisition of SIL will help ACL increase its cement capacity to 73.6 MTPA from the current 67.5 MTPA. With the ongoing capex of 14 MTPA and with commissioning of 5.5 MTPA capacity at Dahej and Ametha by Q2 of FY24, the Adani Group's capacity will be 101 MTPA by 2025.