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Ambuja Cements Ltd
BSE Code 500425 ISIN Demat INE079A01024 Book Value (₹) 122.38 NSE Symbol AMBUJACEM Div & Yield % 0.4 Market Cap ( Cr.) 125,502.71 P/E * 53.07 EPS * 11.91 Face Value (₹) 2
* Profit to Earning Ratio
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Ambuja Cement completes acquisition of Sanghi Industries Back
(05 Dec 2023)
Ambuja Cement has completed the acquisition of Sanghi Industries (SIL). The strategic acquisition, valued at an enterprise value of Rs. 5,185 crore, enhances Ambuja Cement's market presence underscoring Adani Group's steadfast commitment to India's housing and infrastructure development.

With the acquisition funded entirely through internal accruals, ACL holds a controlling stake of 54.51% in SIL.

SIL's Sanghipuram 2,700-hectare integrated manufacturing unit stands out as India's largest single-location cement and clinker production facility. This facility comprises of two kilns with an impressive clinker production capacity of 6.6 MTPA, a cement grinding unit of 6.1 MTPA, a dedicated 13 MW captive power plant and an efficient 13 MW Waste Heat Recovery System. The unit is seamlessly connected to a captive jetty in Sanghipuram.

The acquisition of SIL, with its billion-tonne high quality surface mining limestone reserves, positions ACL to expedite its unique coastal strategy, aiming to increase the cement capacity to 15 MTPA along the West Coast on the strength of SIL's low-cost clinker. This initiative will leverage the strengths of Ambuja and ACC brands, Adani Group's expertise in ports and shipping, and the cost advantage of the Sanghipuram unit. ACL will invest in expanding the existing captive port at Sanghipuram to accommodate larger vessels, contributing significantly to the nation's infrastructure development by meeting the growing demand for cement across Gujarat, Maharashtra, Karnataka & Kerala at a very competitive cost. This is expected to be commissioned over next 30 months.

Furthermore, SIL provides an immediate opportunity for low-cost debottlenecking, increasing clinker capacity by 0.5 MTPA and cement capacity by 1.5 MTPA. The unit also offers potential for green power generation, reaching up to 45%, incorporating an additional 12 MW WHRS and 30 MW of Solar/Wind power. This multifuel flexibility enables the utilization of locally available lignite and an increase in AFR consumption to up to 20%, positioning Sanghipuram as the largest single-location clinker complex and consistently one of the lowest-cost producers.