Hindenburg effect ends, Adani buys big cement company for ₹5000 crore

New Delhi: At the beginning of the year, the American research company Hindenburg issued a negative report against the Adani group. After this report, Adani’s company got a big blow. Shares of Adani’s companies started falling. The company’s market cap fell by more than half. Gautam Adani himself lost more than half of his wealth, but the company is now back on track. Growth has returned again in Adani’s companies. The company is expanding again.

Adani bought another company

Ambuja Cement has announced the acquisition of majority stake in Sanghi Industries at an enterprise value of Rs 5,000 crore. Sanghi Industries is a leading cement company in western India. Sanghi Industries Ltd. by Ambuja Cement, a unit of Adani Group. (SIL) will acquire 56.74 per cent stake in the company from the existing promoters… Ravi Sanghi and family.

Deal done for Rs 5000 crore

This is the first major deal by the group after the Hindenburg report alleged financial irregularities at Adani’s companies. The deal will help Ambuja Cement increase its capacity to 73.6 million tonnes per annum. Ambuja Cement is the second largest cement manufacturer after UltraTech. The Adani Group in September last year acquired Ambuja Cement and its subsidiary ACC Ltd. had entered the cement sector after acquiring a majority stake in

The acquisition of SIL will help Ambuja Cements Limited (ACL) further strengthen its position in the market, the statement said. With this, the cement production capacity of the company will increase from 67.5 million tonnes to 73.6 million tonnes. Adani Group will have a capacity of 101 million tonnes per annum by 2025 after capital expenditure for 14 million tonnes and commissioning of 5.5 million tonnes of capacity at Dahej and Ametha by the second quarter of 2023-24, the statement said.

Commenting on the development, Adani Group Chairman Gautam Adani said, “This is a historic acquisition. This will help in accelerating the growth journey of Ambuja Cements. He added that by joining hands with SIL, Ambuja will expand its market presence and strengthen its product portfolio. This will further strengthen the company’s leadership position in the construction materials sector. Adani Group will achieve a cement production capacity of 140 million tonnes per annum by 2028 ahead of schedule.

Adani said that SIL has one billion tonnes of limestone reserves. Ambuja Cement will increase Sanghipuram’s capacity to 15 million tonnes per annum in the next two years. Ambuja Cement will also invest in increasing the capacity of the private port at Sanghipuram. This will allow more big ships to come there. Sanghi Cement has cement plants in Kutch, Gujarat. It has a clinker plant with a capacity of 6.6 million tonnes per annum and a cement plant with a capacity of 6.1 million tonnes.

SIL’s Sanghipuram unit is the largest cement and clinker unit in terms of capacity at a single destination in the country, the company said in a statement. Ambuja Cement said that we aim to make SIL the lowest cost producer of clinker in the country. Ambuja will increase Sanghipuram’s cement capacity to 15 million tonnes in the next two years. SIL has a dealer network of 850. The company has presence in the markets of Gujarat, Madhya Pradesh, Rajasthan, Maharashtra and Kerala.