Ambuja Cements Limited has successfully completed the acquisition of Sanghi Industries Limited in a strategic move that significantly expands its production capacity and market presence. The deal, valued at Rs 5,185.00 crores, was financed entirely through internal accruals, demonstrating Ambuja Cements' strong financial position.

Key Highlights of the Acquisition

• Controlling Stake: Ambuja Cements has acquired a 54.51% controlling stake in Sanghi Industries.
• Capacity Increase: The acquisition boosts Ambuja's consolidated capacity from 68.50 MTPA to 74.60 MTPA.
• Enterprise Value: The deal is valued at Rs 5,185.00 crores.
• Funding: The acquisition was funded entirely through internal accruals.

Sanghi Industries' Assets

The acquisition brings under Ambuja's control India's largest single-location cement and clinker unit, located at Sanghipuram. The facility boasts impressive capabilities:

• 6.60 MTPA clinker capacity
• 6.10 MTPA cement capacity
• 1 billion tonnes of limestone reserves
• A captive jetty
• 13 MW power plant
• Waste heat recovery system

Strategic Implications

This acquisition is a significant step in Ambuja Cements' growth strategy, particularly in strengthening its presence along India's West Coast. The company has outlined plans to:

1. Increase its West Coast capacity to 15.00 MTPA, covering markets in Gujarat, Maharashtra, Karnataka, and Kerala.
2. Achieve this expansion over the next 30 months.
3. Enhance the Sanghipuram port to accommodate larger vessels.
4. Invest in additional capacity, including potential green power generation of up to 45%.

Market Impact

The acquisition is expected to bolster Ambuja Cements' market position, especially in the western region of India. By leveraging Sanghi Industries' assets and geographical advantage, Ambuja Cements is poised to improve its operational efficiency and expand its market reach.

The move aligns with the company's strategy to grow its production capacity and enhance its competitive edge in the rapidly evolving Indian cement market. The focus on potential green power generation also indicates Ambuja's commitment to sustainable practices in its expansion plans.

As the Indian construction and infrastructure sectors continue to grow, this strategic acquisition positions Ambuja Cements to meet the increasing demand for cement while potentially improving its cost efficiencies through the newly acquired assets.

Ambuja Cements Ltd., a prominent player in the Indian cement industry, witnessed a significant block trade on the National Stock Exchange (NSE). The transaction involved approximately 1,720,980 shares changing hands at a price of Rs. 573.00 per share, amounting to a total value of Rs. 98.61 crores.

Block Trade Details

The block trade, which represents a substantial institutional or bulk trading activity, highlights continued interest in the cement sector. Here's a breakdown of the transaction:

Market Implications

Block trades of this magnitude are often closely watched by market participants as they can provide insights into institutional investor sentiment or potential changes in ownership structure. However, it's important to note that the specific buyers and sellers involved in this transaction have not been disclosed.

About Ambuja Cements

Ambuja Cements Ltd. is one of India's leading cement manufacturers, known for its strong presence in the western and northern regions of the country. The company has been a key beneficiary of India's infrastructure and housing growth story.

This block trade comes at a time when the cement sector is experiencing dynamic market conditions, influenced by factors such as infrastructure spending, real estate development, and overall economic growth in India.

Investors and analysts will likely be watching closely to see if this transaction leads to any significant changes in the company's shareholding pattern or if it signals any broader trends in the cement industry.