On August 3rd, 2023, Gautam Adani, founder, and chairman of the Adani Group announced that the Adani Group’s Ambuja Cement has officially acquired Sanghi Cement.
This announcement comes after the Adani Group acquired Ambuja Cement and its subsidiary ACC last year from the Swiss multinational company Holcim Group for 10.5 billion USD. This marked the entrance of the Adani Group
Now, as a major part of their plan to double their cement production capacity by 2028, Adani Group’s Ambuja Cement has acquired Sanghi Cement for Rupees 5000 Crore. This brings 56.74% of Sanghi Cement’s shares to Ambuja Cement.
Ravi Sanghi, chair and managing director, Sanghi Industries shared his optimism regarding this acquisition, saying - “We are optimistic about the acquisition by Ambuja Cements, recognising it as a mutually beneficial opportunity for both of the shareholders,”.
Gautam Adani’s Adani Group is already equipped with a great portfolio of companies from various industries under their belt. This includes companies from the energy industry, utility industry, transport and logistics industry, media industry, real estate industry and more.
With their acquisition of Ambuja Cement, the Adani Group entered the cement industry and immediately become the second largest player in the Indian cement industry. Now, with the recent acquisition of Sanghi Cement, Ambuja Cement is expected to grow further.
Gautam Adani, chairman, Adani Group shared his statement following this acquisition, saying – “The landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey. Ambuja is poised to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector. “
The Adani Group may not have laid out their entire game plan, but it’s guaranteed that their expansion efforts in the cement industry are going to bring great results. This is due to the ongoing infrastructure expansion and drive in India, which was led and started by India’s Prime Minister, Narendra Modi.
Currently, India is the second largest manufacturer and consumer of cement, with over 330 million tonnes of cement produced annually. However, this number is expected to grow further with the ongoing infrastructure drive that includes countless projects such as railways, metros, airports, highways and more that will continue to provide massive benefits to the cement industry.
The Adani Group continues to shake things up in the market and is bound to make huge profits from this growing demand from the cement industry. It will be interesting to see what steps Adani Group’s Ambuja Cement will take following this acquisition to continue their plan of reaching 140 MPTA production capacity by 2028.