New Delhi:

Ambuja Cement, a part of Adani Group, today announced its acquisition of Sanghi Industries at an enterprise value of Rs 5,000 crore.

Soon after the acquisition, Adani Group chairman Gautam Adani said Ambuja Cement’s promise to double its cement capacity by 2028 is on track.

“Promise to double our cement capacity by 2028 on track. Delighted to announce addition of @CementSanghi, India’s most efficient / lowest cost clinker manufacturer to Adani portfolio. As part of @AmbujaCementACL, Sanghi Cement (in our karmabhoomi Kutch) significantly leverages our coastal shipping (+ energy/logistics) advantages. Sanghipuram cement capacity to double to 15 MTPA,” he posted on X, earlier called Twitter.

Promise to double our cement capacity by 2028 on track. Delighted to announce addition of @CementSanghi, India’s most efficient / lowest cost clinker manufacturer to Adani portfolio. As part of @AmbujaCementACL, Sanghi Cement (in our karmabhoomi Kutch) significantly leverages our… pic.twitter.com/pjcUZFN3IH

— Gautam Adani (@gautam_adani) August 3, 2023

A statement by Ambuja Cement said the acquisition will be fully funded through internal accruals.

Sanghi Industries Limited (SIL) has a clinker capacity of 6.6 million tonnes per annum, cement capacity of 6.1 million tonnes per annum and limestone reserves of 1 billion tonne.

SIL’s Sanghipuram unit is India’s largest single-location cement and clinker unit by capacity, with a captive jetty and captive power plant.

This acquisition will boost Ambuja Cement’s production capacity to 73.6 million tonnes per annum.

The statement said its goal to reach 140 million tonnes per annum capacity by 2028 will be achieved ahead of time.

“Our aim is to make SIL the lowest cost producer of clinker in the country. Ambuja will increase the cement capacity at Sanghipuram to 15 MTPA in the next two years,” the company said.