Adani New Deal: Gautam Adani made a big deal in the cement sector, will acquire this company, know the details

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Adani New Deal: Adani Group is rapidly increasing its business in the country. Meanwhile, news is coming that the group has made another big purchase in the cement sector. Ambuja Cements Limited, a company of Adani Group and a subsidiary of Adani Cement, has announced the purchase of Sanghi Industries. According to media reports, Sanghi Industries will be acquired through Enterprises Value of 5000 crores. APSEZ CEO Karan Adani said that the Adani group will invest to increase the capacity of Sanghipuram’s privately-used port. With this, big ships will be able to come here. It is being told that the Adani group was in talks for a long time to take a majority stake in Sanghi Industries, a major cement maker in western India. This will be the first major settlement of the Adani group after allegations of financial fraud were made in a report released in January by American research and investment company Hindenburg Research.

Adani Cement will get help in expanding its capacity

Adani Group’s agreement will help Adani Cement, the second largest manufacturer after UltraTech, to expand its capacity. The group had entered this segment last September after acquiring majority stake in Ambuja Cement and its subsidiary ACC Ltd. According to some media reports, the enterprise value of Sanghi Industries in the deal is around $600 million and the Adani group will buy the promoters’ stake. The promoter and promoter group held 72.72 per cent stake in Sanghi Industries as on June 30, 2023. In this regard, questions were asked to Adani Group through e-mail, but at present no response has been received from their side.

Ambuja Cements Limited will be acquired from internal sources

According to the company, Ambuja Cements Limited will buy 56.74 per cent stake in the company from Ravi Sanghi & Family, the existing promoter group of Sanghi Industries Limited. 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 MT per annum. ACL’s target of achieving 140 MTPA capacity by 2028 will be met ahead of time. 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 the acquisition of Sanghi Industries and after this acquisition, ACL’s cement capacity will increase from the current 67.5 MTPA to 73.6 MTPA.

What are the assets of Sanghi Industries

The current owners of Sanghi Industries are Ravi Sanghi & Family. He holds 56.74 percent stake in the company. The company has India’s largest single location cement and clinker unit at Sanghipuram in Kutch district of Gujarat. This is the biggest integrated unit with the company. After the acquisition of Sanghi, Ambuja Cement will have the largest cement unit of the company. The cement unit at Sanghi is situated on 2700 acres of land and is an integrated unit with 2 clinches and 6.6 MTPA along with a grinding unit of 6.1 MTPA. 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.

How does one company acquire another company

For a company to acquire another company (merger and acquirer), both the companies first negotiate. The boards of directors of both the companies agree on an agreement to plan the acquisition. In this, the details of acquisition, time limit, valuation of property, stock currency etc. are adjusted. Once the plan is made and agreement is made, Naubat (Form 23C and Form 1 Naubat) is issued. This includes the process and details of the acquisition. After issuing Naubat, it is presented to the Supreme Court or Naubat Accepting Officer. After obtaining the approval, the implementation of the acquisition is started as per the plan. In this, one company obtains control of the property, stock, and assets of another company. Following the acquisition, the various process, production, finance, and management systems of the two companies were integrated. Various divided structures are converted into a consolidated and organized structure.

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