Adani to invest in Sanghipuram captive port capacity expansion

New Delhi The Adani group will make investments to expand the captive port capacity of Sanghipuram, in Gujarat's Kutch district, to handle vessel sizes of 8,000 DWT (deadweight tonnage), said Adani Ports and Special Economic Zones (APSEZ) CEO Karan Adani on Thursday. Adani Group firm Ambuja Cements on Thursday said it will acquire a majority stake in Sanghi Industries Ltd (SIL), one of the leading cement manufacturers from western India, at an enterprise value of Rs 5,000 crore.

Sanghi Cement has a manufacturing unit at Sanghipuram in Gujarat's Kutch district, which is also connected with a captive jetty at Sanghipuram. It has a 6.6-MTPA (Million Tonnes per annum) capacity clinker plant and a 6.1-MTPA capacity cement Plant. "We will also invest in deepening and expanding the captive port capacity in order to accommodate larger vessel sizes of 8000 DWT," said Karan Adani speaking after the acquisition of Sanghi Industries.

Adani Ports handles six ports and terminals on the west coast at Mundra, Dahej, Tuna, and Hazira in Gujarat, Mormugao. While on the East coast, it operates five ports and terminals - Dhamra in Odisha, Gangavaram, and Krishnapatnam in Andhra Pradesh and Kattupalli and Ennore in Tamilnadu. APSEZ's flagship Mundra Port is the largest integrated transport utility in India. Bulk terminals and grinding units will be created along the western coast to enable the movement of clinker and cement through the sea route at the lowest possible cost.

"Our vision is to produce lowest cost clinker in the country at Sanghipuram and then transport this clinker as well as bulk cement through coastal roads to the markets of Saurashtra South Gujarat, Mumbai and Mumbai Metropolitan Region Karnataka and kerala," he said, adding "Synergies with the assets of Adani ports will help us in implementation of this strategy."

He further said that with the right implementation, he is very "confident" that Adani Group will be the lowest-cost supplier of cement in all of these markets.

Sanghi Industries' Sanghipuram unit is India's largest single-location cement and clinker unit by capacity, with a captive jetty and captive power plant. SIL also has a bulk cement terminal each at Navlakhi Port in Gujarat and Dharamtar Port in Maharashtra. Most of the cement is transported through the sea route, which is environment-friendly and cost competitive. SIL has a network of 850 dealers, with market presence in Gujarat, Madhya Pradesh, Rajasthan, Maharashtra and Kerala.