Ambuja Cements to Buy Majority Stake in Sanghi Industries
In a strategic move to solidify its position in the cement industry, Ambuja Cements, a subsidiary of the Adani Group, is on the verge of acquiring a controlling stake in the operations of Sanghi Industries, as reported by Reuters.
The highly anticipated deal, expected to be officially announced by both companies on Wednesday, is generating significant buzz in the market. However, the precise stake percentage and the financial details of the transaction have not been disclosed at this time.
On Tuesday, shares of Ambuja Cements closed slightly lower, at ₹461.60 apiece on the BSE. The company’s value has experienced a year-to-date decline of 12.32% and a 22.99% decrease over the past twelve months.
According to reliable sources cited in the Reuters report, the deal places Sanghi Industries’ enterprise value at an impressive 60 billion rupees ($729 million). The Economic Times previously reported that the Adani Group was the leading contender in the race to acquire Sanghi at this valuation.
Both Adani Group and Sanghi Cement declined to comment on the ongoing developments. Ambuja Cements, along with its sibling company ACC Ltd., form a substantial force in the cement industry, ranking as India’s second-largest cement producer, second only to UltraTech Cement. Their combined production capacity exceeds an impressive 65 million tonnes, with operations spanning across numerous manufacturing plants across India.
Sanghi Industries, on the other hand, holds a considerable production capacity of 6.1 million metric tonnes per annum, particularly dominating the Gujarat region. A spokesperson from the Adani Group highlighted that cement is a key focus area for the conglomerate, signaling plans to explore multiple greenfield opportunities.
About Ambuja Cements:
Ambuja Cements Limited, previously known as Gujarat Ambuja Cement Limited, stands as a prominent Indian cement manufacturing company. The corporation caters to both domestic and international markets, marketing cement and clinker.
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