Ambuja Cement on Thursday announced acquisition of Sanghi Industries at an enterprise value of Rs 5,000 crore.
In a statement, it said the acquisition will be fully funded through internal accruals.
Sanghi Industries Ltd (SIL) has a clinker capacity of 6.6 MTPA (million tonne per annum), cement capacity of 6.1 MTPA and limestone reserves of 1 billion tonne.
SIL’s Sanghipuram unit is India’s largest single-location cement and clinker unit by capacity, with a captive jetty and captive power plant.
With this acquisition, Ambuja Cement's capacity will increase to 73.6 MTPA. Ambuja’s goal of 140 MTPA capacity by 2028 will be achieved ahead of time, it said.
"Our aim is to make SIL the lowest cost producer of clinker in the country. Ambuja will increase the cement capacity at Sanghipuram to 15 MTPA in the next two years," the company said.
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