Adani plans $4-5 bn cement bet after Sanghi acquisition

livemint.com:

MUMBAI : Adani Group will invest $4 billion-$5 billion to expand its cement capacity to over 100 million tonnes in two years, two people aware of the matter said, on a day the conglomerate made yet another acquisition. On Thursday, Ambuja Cements Ltd, part of Adani Cement, announced the purchase of 57% promoter stake in cement maker Sanghi Industries Ltd at an enterprise value of ₹5,000 crore.

“Adani will add around 30 million tonne per annum (mtpa) cement making capacity in two years, both via organic and brownfield acquisitions, for which $4-5 billion could be invested, which will be funded mostly through internal accruals," one of the two people cited above said on condition of anonymity. The acquisition of Sanghi Industries, which will be funded by internal accruals, increases Ambuja’s cement capacity to 73.6 mtpa from the current 67.5 mtpa.

“This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey," said Gautam Adani, the chairman of Adani Group. The planned $4-5 billion investment in cement business, Thursday’s acquisition of Sanghi Industries, and the recent expansion moves in other group businesses indicate how the conglomerate is regaining its tag as an aggressive corporate group, six months after a scathing report by Hindenburg Research compelled the group to pause investments and trim capital expenditure (capex) plans.