Ambuja Cements’ shares went up by nearly 4 per cent after the company announced the acquisition of Sanghi Industries Ltd (SIL) for an enterprise value of Rs 5,000 crore. ACL will acquire 56.74 per cent of SIL shares from its existing promoter group.

The major attraction of SIL’s assets is its Sanghipuram unit in Gujarat’s Kutch district, India’s largest single-location cement and clinker unit by capacity. It includes two kilns with a clinker production capacity of 6.6 MTPA, and a cement grinding unit of 6.1 MTPA. Additionally, it has a 130 MW captive power plant and a 13 MW Waste Heat Recovery System. The unit is also connected to a captive jetty at Sanghipuram.

With this acquisition, Ambuja Cements’ capacity will increase to 73.6 MTPA, helping it reach 140 MTPA of cement manufacturing capacity by 2028, ahead of schedule.

ACL will increase the cement capacity at Sanghipuram to 15 MTPA over the next two years. The Adani Group, known for its expertise in marine infrastructure, will invest in expanding the captive port at Sanghipuram to handle larger vessels, aiming to achieve the lowest cost of clinker production in the country.

SIL’s network of 850 dealers and its market presence in Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Kerala will further strengthen Ambuja Cements’ distribution capabilities and market reach. The company will also leverage the use of sea routes for transporting cement, which is known to be cost-competitive and environment-friendly.

The shares went up by 1.02 per cent to Rs 465 at 09:28 a.m. on BSE. At 11 am, the stock was trading at Rs 479.00, up 3.92 per cent.

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