In a significant development in India's cement industry, Ambuja Cements, a premier cement company, has completed the acquisition of Sanghi Industries, a respected player in the sector. This move marks a strategic step towards strengthening Ambuja Cements' market position and expanding its footprint across the country.
Boosting Production Capacity
The acquisition includes the manufacturing units of Sanghi Industries, set to significantly boost Ambuja Cements' production capacity. This increase in the production muscle not only enhances the company's distribution network but also deepens its reach into the market.
Aiming for Better Economies of Scale
With the merger of Sanghi Industries, Ambuja Cements envisions achieving superior economies of scale. The goal is to improve its product portfolio and provide a more comprehensive range of cement products to its clientele. This move underlines Ambuja Cements' commitment to delivering quality products and services to its customers.
Part of a Larger Trend in Indian Cement Sector
The acquisition is a reflection of the ongoing consolidation trend within the Indian cement sector. Companies are increasingly looking to fortify their market share and competitive edge through strategic mergers and acquisitions. This deal, however, does not disclose the financial terms or the expected impact on the stakeholders of both companies.
Previously, Sanghi Industries had planned to market its cement with ACC branded packaging post-acquisition. Now, with Ambuja Cements buying a 56.74% stake in Sanghi Industries, it will be interesting to see how the branding strategies unfold. This acquisition, worth Rs 5,000 crore, sees Sanghi Industries hit a 52-week high, heralding a positive turn for the company.