Adani Group Income: Gautam Adani’s masterstroke! Bumper increase in income due to the acquisition of ACC-Ambuja Cement
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Adani Group Income: India’s second richest industrialist Gautam Adani is working very fast to make up for the loss of the Hindenburg Research report after January. However, according to media reports, the group’s losses have reduced to a great extent due to the company’s excellent performance and management. Now, another relief news is coming for Adani. It is being told that after the acquisition of Adani Group, the pre-tax income (Ebitda) of ACC-Ambuja Cement has increased from Rs 350 to Rs 1,350 per tonne. Sources said the group expects this figure to increase to Rs 1,400 by 2024. Adani Group had acquired Ambuja Cement Limited and ACC Limited last year. Ambuja Cement has six integrated cement manufacturing plants and eight cement grinding units across the country. Along with this, its annual cement capacity is 31 million tonnes. ACC has 17 cement manufacturing units and 85 concrete plants and has an annual cement capacity of 34.4 million tonnes.
What is the company’s plan?
Adani Group now plans to double the annual cement capacity by 2027. Company sources said that after the completion of the acquisition in September 2022, Ebitda per tonne cement has increased from Rs 350 to Rs 1,350. It will be increased to Rs 1,400 per tonne by 2024. The current EBITDA margin is around 20 percent, the target is to increase it to around 25 percent. Sources said the group wants to achieve sales of 120 million tonnes by March 2028.
Sanghi Industries Limited acquired
Gautam Adani has also recently acquired Sanghi Industries Limited. The enterprise value of this deal is Rs 5185 crore. Adani Group has funded this deal through its internal sources. Now Ambuja Cement will have 54.51 percent stake in the company. On August 3, 2023, Ambuja Cements had announced the purchase of 54.74% stake in Sanghi Industries from the existing promoter group Ravi Sanghi & Family. Ambuja Cements will fund this acquisition entirely from internal accruals. After the acquisition of Sandhi Industries, the production capacity of Ambuja Cement will increase to 73.6 metric tons annually. ACL’s target of achieving 140 MTPA capacity by 2028 will be achieved ahead of schedule. Along with this, Ambuja Cement aims to make Sanghi Industries the lowest cost clinker company in the country. Ambuja Cements is expected to gain a lot from buying Sanghi Industries and after this acquisition, the cement capacity of ACL will increase from the current 67.5 MTPA to 73.6 MTPA.
What were the assets of Sanghi Industries
Sanghi Industries was owned by Ravi Sanghi and family. He held 56.74 percent stake in the company. The company had India’s largest single location cement and clinker unit at Sanghipuram in Kutch district of Gujarat. This was the largest integrated unit that the company had. After the acquisition of Sanghi, Ambuja Cement will have the largest cement unit of the company. Sanghi’s cement unit is located on 2700 acres of land and is an integrated unit with 2 clinches and 6.6 MTPA along with 6.1 MTPA grinding unit. Along with this, the plant has a captive power plant of 130 MW. While there is also a 13 MW waste heat recovery system. The unit is also attached with a captive jetty at Sanghipuram.
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