Categories: Business

Ambuja Cements, Controlled By Adani, Purchase Bulk Of Sanghi Industries

According to a report, Ambuja Cements, which is controlled by the Adani Group, is planning to buy the bulk of the stock in Sanghi Industries in order to expand its footprint in the cement sector.

The deal’s official announcement is anticipated to take place on Wednesday. The precise stake percentage and transaction value are unknown.

The acquisition was reportedly sealed by taking into account Sanghi’s enterprise value of 60 billion rupees ($729 million). Adani was previously listed as one of the front-runners in the competition to buy Sanghi, which was being appraised at that enterprise value.
Among India’s top cement producers is Ambuja Cements Ltd. It should be mentioned that Adani, after UltraTech Cement, is India’s second-largest cement maker. It owns Ambuja and its subsidiary ACC Ltd, which together have more than a dozen manufacturing facilities spread across India with a production capacity of more than 65 million tonnes.

For the quarter ending in June 2023, Ambuja Cements reported a 31% year-over-year (YoY) increase in consolidated profit at Rs 1,135 crore. In the equivalent quarter of the prior fiscal year, the net profit was Rs. 865 crore.

In the meantime, Q1’s consolidated sales increased 9% YoY to Rs 8,713 crore.

“Growth was powered by our multiple capabilities in operational efficiency, supply chain management, and sales & marketing excellence, as well as the strong demand for our premium cement products. As a result of our synergies with the Adani Group firms, our EBITDA growth is increasing, according to Ambuja Cements’ Whole-Time Director and CEO Ajay Kapur.

Sanghi, which enjoys dominance in Gujarat, has a 6.1 million metric tonnes annual production capacity. Cement was a significant area of concentration for the Adani Group, and there were plans to investigate other greenfield opportunities, a representative for the company had told Reuters.

Priyanka Rai

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