The new acquisition will further strengthen Adani Group in a segment where the port-to-power conglomerate is the second biggest player despite making its entry less than a year ago.
Billionaire Gautam Adani-led Adani Group has made its first major market move after the Hindenburg saga with its cement firm Ambuja Cement. The Adani group firm has announced acquisition of a majority stake in rival Sanghi Industries, among western India’s leading cement makers in a deal with enterprise value of Rs 5,000 crore. This includes
Ambuja Cement will acquire a majority 56.74 percent stake in Sanghi Industries Ltd (SIL) from promoters Ravi Sanghi and family. A statement from the company said that the acquisition will be fully funded through internal accruals. Ambuja Cement has a market cap of over Rs 93,600 crore. Sanghi Industries Limited is a listed company with a market cap of over Rs 2,800 crore.
The deal will reportedly bring Rs 1,674 crore to the promoter family for the 57% stake they are selling to Adani. Ambuja Cements will also make an open offer worth another Rs 767 crore. Adani Group’s offer values Sanghi Cements at Rs 114 per share. The Adani Group firm will lend another Rs 300 crore to Sanghi.
Adani, with its Ambuja Cement and ACC acquisition in September 2022, is the second largest manufacturer after UltraTech. The acquisition of Sanghi will take its capacity to 73.6 MTPA (million tonne per annum). Its current capacity is 67.5 MTPA. The group targets a capacity of 101 MTPA by 2025.
“This landmark acquisition is a significant step forward in Ambuja Cements' accelerating growth journey. By joining hands with SIL, Ambuja is poised to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector. With this acquisition, Adani Group is well on course to achieve its target of 140 MTPA of cement manufacturing capacity by 2028 ahead of time,” Adani Group Chairman Gautam Adani said on the Sanghi deal.
(With inputs from PTI)
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 "Billionaire Gautam Adani's big move for Rs 5,000 crore firm, bounces back from Hindenburg saga")
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