### **Overview** Sanghi Industries Limited (SIL), incorporated in 1985, is a leading integrated cement manufacturer in India and a wholly owned subsidiary of **Ambuja Cements**, part of the **Adani Group** since its strategic acquisition. Located in Sanghipuram, Kutch (Gujarat), SIL operates **India’s largest single-location integrated cement and clinker production facility** with a cement capacity of **6.1 million tonnes per annum (MTPA)** and clinker capacity of **6.6 MTPA**. Since its integration into the Adani Group, SIL has undergone significant transformation—resolving liquidity issues, reducing debt, improving operational efficiency, and aligning with a long-term sustainability and scale-up vision. --- ### **Strategic Positioning and Ownership** - **Parent Entity**: Ambuja Cements (under Adani Group) - **Ultimate Promoter**: Adani Group – one of India’s largest infrastructure and utility conglomerates with investment-grade credit ratings across four of its listed entities. - **Key Integration**: Merged with Ambuja Cements’ operations to unlock **operational, financial, and supply chain synergies** and strengthen Adani Cement’s pan-India leadership. SIL functions as a critical node within Adani's vertically integrated cement platform, contributing to the group's ambition of becoming the **world’s largest cement producer**. --- ### **Production and Capacity Expansion** - **Current Group Cement Capacity**: ~107 million metric tons per annum (MTPA); **clinker capacity**: ~65 MTPA. - **Target (FY28)**: Expand to **155 MTPA cement and 96 MTPA clinker**, reflecting a 10–15% annual growth rate. - **SIL’s Role**: Central to capacity expansion through **brownfield and greenfield projects**, debottlenecking, and integration of acquired assets. #### **Key Projects** - **Bhatapara (Chhattisgarh)**: 4 MTPA clinker unit, with linked grinding units in **Sankrail (West Bengal)** and **Sindri (Jharkhand)** — expected commissioning by FY26. - **Salai Banwa (UP), Dahej (Gujarat), Kalamboli (Maharashtra), Bathinda (Punjab), Jodhpur (Rajasthan), Warisaliganj (Bihar)**: Under active development. - **Krishnapatnam (Andhra Pradesh)**: 4 MTPA clinkering and 2.4 MTPA PPC grinding unit, scheduled for Q4 FY26. --- ### **Operational Excellence and Cost Leadership** SIL benefits from **fully integrated operations**, resulting in one of the **lowest production costs in the industry**. - **Captive Infrastructure**: - **143 MW thermal power plant** (upgraded from 130 MW) - **All-weather port and sea terminals** in Gujarat and Mumbai, with dedicated vessels - One of **India’s largest reserves of high-grade marine limestone** (security for 25+ years) - Multi-fuel technology enabling use of **coal, pet coke, and lignite** for flexibility and cost optimization - **Energy Efficiency and Cost Reduction Goals**: - Target to reduce production cost to **INR 3,650/ton by FY28** - Waste Heat Recovery Systems (WHRS) capacity: **218 MW**; aimed to meet **30% of group energy needs** at 140 MTPA scale - **1,000 MW renewable energy** target (300 MW already operational; full commissioning by 2026) - **Captive coal sourcing**: 50% current needs met via owned mines (Gare Palma, Dahegaon Gowari, Lama Tola bid); targeting **80–90% self-sufficiency** in coal within 12 months - **Logistics Optimization**: Partnership with **CONCOR** to develop **bulk cement terminals**, reduce emissions, and enhance rail-based distribution for net-zero goals. --- ### **Supply Chain and Market Alignment** - **Master Supply Agreement (MSA)**: - SIL **exclusively supplies clinker and cement in bulk** to **Ambuja Cements and ACC**, reducing market volatility exposure. - In FY24–25: Delivered **1.68 lakh MT clinker to Ambuja** and **1.77 lakh MT to Adani Cement Industries Ltd (ACIL)**. - Ensures **high capacity utilization, stable revenue, and demand assurance**. - **Fuel and Raw Material Security**: - Strategic procurement from **Adani Enterprises Limited (AEL)**: - High-quality coal at arm’s length prices - Fly ash supply reducing logistics costs - Shared administrative, HR, IT, and financial services on cost-recovery basis - Transition from third-party dependency has resolved past issues of **delivery delays and inconsistent quality**. --- ### **Sustainability and Decarbonisation** Aligned with Adani Group’s climate leadership goals: - **Digitalisation & Automation**: - **Cement Network Operating Centre (CNOC)** in Ahmedabad monitors and optimizes quarry-to-delivery operations. - Digitised value chain enhancing **EBITDA growth and process control**. - **Decarbonisation Partnerships**: - Adani Cement (parent platform) partnered with **Coolbrook** in Nov 2025 to deploy **RotoDynamic Heater™ (RDH™)** technology for **carbon-free process heating** in cement and steel. - RDH enables temperatures up to **1700°C**, replacing fossil fuel combustion. - Part of a broader plan to launch **five+ decarbonisation projects in next two years**, supporting low-carbon cement manufacturing. - **Environmental Impact**: - SIL’s Kutch operations have transformed arid land into a **green and clean zone** through afforestation and water conservation. - Water desalination plant supports sustainable water usage in water-scarce region. --- ### **Strategic Growth Drivers** - **Rapid Scale-Up**: Adani Cement has become the **fastest-growing cement business in India**, reaching **100 MTPA in just 30 months**, now ranked **9th largest globally**. - **Acquisition Strategy**: Disciplined "build vs buy" approach targeting capacity additions at **< $80/ton**. - Post-August 2024: Acquired **Penna Cement, Asian Cement, My Home’s Tuticorin unit**, and realty firms like **Anantroop Infra, Eqacre Realtors**, signaling expansion into **real estate and infrastructure ecosystems**. - **Inorganic + Organic Growth Mix**: Nearly **50% capacity growth in 30 months**, with FY26 targets of **118 MTPA** and **140 MTPA by FY28**.