New Delhi, Aug 2 (PTI) Adani group, led by billionaire Gauatm Adani, is in talks to acquire majority stakes in Sanghi Industries which is one of the leading cement manufacturers from western India, said an industry source.

This would be the first major deal by ports-to-power conglomerate Adani Group after the report from Hidenburg, the short-selling firm which had alleged financial misconduct.

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The talks are in the final stages of the negotiation and an announcement is expected soon, said the industry source.

If the deal is through, this would help Adani Cement, the second biggest manufacturer after UltraTech, to expand its capacity into the segment, which it had entered last September, after the acquisition of majority stakes in Ambuja Cement and its subsidiary ACC Ltd.

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According to some media reports, in the deal, the enterprise value of Sanghi Industries is around USD 600 million and the Adani group would buy the promoters' stake.

The Promoter & Promoter Group hold a 72.72 per cent stake in Sanghi Industries as on June 30, 2023.

An e-mail sent to the Adani group remained unanswered.

Sanghi Cement has cement plants located at Kutch in Gujarat, which has a 6.6-MMTPA capacity clinker plant and a 6.1-MMTPA capacity cement Plant.

Adani Cement, led by Gautam Adani's son Karan Adani, has an installed capacity of nearly 70 MMTPA and is looking for aggressive expansion.

Earlier on Wednesday, Ambuja Cement reported an increase of 31.2 per cent in consolidated net profit at Rs 1,135.46 crore in the quarter ended on June 30, 2023, led by volume growth and reduction in operating cost.

The company, now part of the Adani Group, had clocked a consolidated revenue from operations up 8.46 per cent to Rs 8,712.90 crore during the quarter under review.

The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd, in which it owns around 51 per cent stake.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)