Adani-owned Ambuja Cements to acquire majority stake in India's Sanghi -sources

Sanghi Industries

01/08/2023 19:15

By Aditya Kalra
       NEW DELHI, Aug 1 (Reuters) - India's Ambuja Cements
 ABUJ.NS  has reached a deal to acquire a majority stake in
operations of Sanghi Industries  SNGI.NS , two sources with
direct knowledge said, a transaction that will add heft to
cement operations of billionaire Gautam Adani's firm.
    The deal by Ambuja is likely to be announced as soon as
Wednesday, the sources said, declining to be named because the
decision is not public. They did not share the exact stake
percentage.
    One of the sources said the deal was done by considering
Sanghi's enterprise value at 60 billion rupees ($729 million).
India's Economic Times last week reported that Adani was among
those leading the race to acquire Sanghi, which was being
appraised at that enterprise value.
    Adani Group did not respond to a request for comment. Sanghi
Cement declined to comment. 
    Adani is India's second largest cement producer, behind
UltraTech Cement  ULTC.NS . It owns Ambuja and its subsidiary
ACC Ltd  ACC.NS , which have a capacity to produce more than 65
million tonnes with more than a dozen manufacturing plants
across India.
    Sanghi is one of the leading cement manufacturers from
Gujarat state in western India. It has a production capacity of
6.1 million metric tonnes per annum, its website says.
    A spokesperson for the Adani Group told Reuters in June that
cement was a key focus area and there were plans to explore
multiple greenfield opportunities.

 (Reporting by Aditya Kalra; Editing by Leslie Adler)
 ((aditya.kalra@thomsonreuters.com;))