Sanghi Industries Limited (SIL), a prominent player in the cement industry, has issued a postal ballot notice seeking shareholder approval for material modifications to its related party transactions (RPTs) with Adani Enterprises Limited (AEL), its subsidiary Adani Global PTE Limited (AGPTE), and Adani Cement Industries Limited (ACIL). The proposed changes aim to enhance operational flexibility and expand the scope of transactions without altering the overall approved transaction limits.

Modifications in Transactions with AEL and AGPTE

SIL proposes to remove the Rs. 50.00 crore sub-limit for transactions with AGPTE, while maintaining the combined limit of Rs. 750.00 crore for AEL and AGPTE. This modification is designed to provide greater sourcing flexibility for solid fuels and shared services, addressing challenges in procurement due to global macroeconomic and geopolitical issues.

The company cites operational challenges in procuring solid fuels from third-party vendors, including complex delivery terms, delays in opening letters of credit, inconsistent supply timelines, and quality issues. By leveraging its relationship with AEL and AGPTE, SIL aims to ensure a more reliable supply of superior quality solid fuels at arm's length pricing, supported by efficient logistics and delivery schedules.

Expanded Scope of Transactions with ACIL

SIL also seeks approval to expand the nature of RPTs with ACIL, which recently became a wholly-owned subsidiary of Ambuja Cements Limited, SIL's holding company. The proposed modifications include:

1. Expanding transaction types to include sale/purchase of cement, clinker, raw materials, and spare parts.
2. Availing and rendering of services through Master Supply and Master Service Agreements.

The overall limit for transactions with ACIL remains unchanged at Rs. 250.00 crore for the financial year 2025-26. This expansion aims to achieve synergies, reduce operational costs, and enhance business sustainability.

Financial Impact and Shareholder Voting

The proposed transactions with AEL and AGPTE represent 78.11% of SIL's annual turnover, while those with ACIL account for 26.04% of SIL's turnover and 196.87% of ACIL's turnover, based on FY 2024-25 figures.

Sanghi Industries has emphasized that all proposed RPTs will be conducted on an arm's length basis and in the ordinary course of business. The company has obtained an arm's length opinion from an independent external firm to support this assertion.

Shareholders can cast their votes electronically from September 23, 2025, to October 22, 2025. As per SEBI regulations, related parties of SIL are not permitted to vote in favor of these resolutions.

The proposed modifications reflect Sanghi Industries' efforts to optimize its operations within the Adani Group ecosystem, potentially leading to improved efficiency and cost-effectiveness in its cement manufacturing and distribution processes.

Sanghi Industries Limited , a key player in the Indian cement sector, has released its investor presentation for the first quarter, showcasing robust operational and financial performance. The presentation, submitted to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), highlights significant growth across key metrics.

Record-Breaking Performance

Sanghi Industries reported its highest quarterly sales volume of 18.40 million tonnes, marking a substantial 20% year-on-year increase. This volume growth translated into impressive financial results, with revenue surpassing the Rs 10,000 crore milestone to reach Rs 10,289.00 crore, up 23% compared to the same quarter last year.

Profitability Surge

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a remarkable 53% year-on-year jump, reaching Rs 1,961.00 crore. This surge in EBITDA underscores Sanghi Industries' operational efficiency and cost management strategies.

Capacity Expansion and Sustainability Initiatives

Sanghi Industries reported a current cement capacity of 104.50 MTPA (Million Tonnes Per Annum), positioning itself well to achieve its planned capacity of 118.00 MTPA by March 2026. The company's commitment to sustainable practices is evident in its commissioning of a 57 MW wind power project in Q1, boosting its total renewable energy capacity to 473 MW.

Innovation in Operations

The investor presentation highlighted several innovative initiatives:

1. Implementation of DIGIPIN for freight standardization and hyperlocal marketing.
2. Launch of 'NirmAAAnotsav' in partnership with CREDAI, starting in Ahmedabad with plans to expand to 20 other cities.
3. Approval of the scheme of amalgamation of Adani Cementation Limited with Ambuja Cements Limited by the NCLT (Ahmedabad bench) on July 18.

Market Recognition

Sanghi Industries' brand strength was reaffirmed as it was ranked 'India's Most Trusted Cement Brand' for the fourth consecutive year by TRA Research in its Brand Trust Report.

Financial Highlights

The presentation revealed key financial metrics for Q1:

Future Outlook

With its strong Q1 performance, ongoing capacity expansion, and focus on sustainable practices, Sanghi Industries appears well-positioned for continued growth in the dynamic Indian cement market. The company's strategic initiatives in digitalization, partnerships, and operational efficiency are likely to play crucial roles in its future performance.

The investor presentation will be discussed in detail during an analyst/institutional call scheduled for July 31, providing further insights into the company's strategies and outlook for the remainder of the fiscal year.