We place significant emphasis on initiatives aimed at curbing Greenhouse Gas (GHG) emissions, tackling climate change, managing air emissions and waste in alignment with circular economy principles, ensuring responsible water sourcing, preserving biodiversity, and upholding the highest standards of Corporate Social Responsibility (CSR). These efforts underscore our firm belief in the importance of sustainable development and our resolve to make meaningful contributions towards a greener and more equitable future.”
New beginnings are often regarded as the start of something great. The story of Sanghi Industries Limited (SIL) echoes the exact same sentiment. The acquisition of the Company by Ambuja Cements has opened a world of new possibilities to strive and chart a sustainable growth story.
SIL truly established itself as a respectable player in the cement industry, with its moats ranging from its vast industry experience, to possessing one of the largest limestone reserves, to achieving perhaps the lowest cost of cement manufacturing in the country. However, its potential as a cement supplier was muted, contrary to the premium brands in the market.
The injection of funds from Ambuja Cements has not only alleviated our liquidity concerns but also empowered us to retire high interest secured debts, thereby fortifying our Balance Sheet. Moreover, these resources have been instrumental in addressing our immediate working capital requirements, positioning us favourably for expansion initiatives.
During the year, we recorded revenues of ` 821 crore compared to ` 928 crore in the previous year, a decrease of 12%. Our EBITDA stood at a negative ` (58) crore compared to ` 6 crore in the previous year; we suffered losses of ` (449) crore, compared to ` (326) crore in the previous year. Our total cement sales were recorded at 1.72 million tonnes compared to 1.69 million tonnes in the previous year. The underlying reason responsible for the decline in performance is the ineffective utilisation of our capacities and capabilities.
With the recent acquisition, our Company has experienced a substantial enhancement in our market position, setting the stage for accelerated growth in the foreseeable future. The injection of funds from Ambuja Cements has not only alleviated our liquidity concerns but also empowered us to retire high interest secured debts, thereby fortifying our Balance Sheet. Moreover, these resources have been instrumental in addressing our immediate working capital requirements, positioning us favourably for expansion initiatives. This strategic move has not only solidified our current standing but has also laid a robust foundation for scaling up our operations in the coming years.
As a proud member of Ambuja Cements, renowned for its leadership in the cement industry, we are unwavering in our commitment to conducting our business operations responsibly, with a sharp focus on sustainability and innovation. Our dedication to this cause is evident through our introduction of eco-friendly product lines and our steadfast adherence to sustainable business practices. We place significant emphasis on initiatives aimed at curbing Greenhouse Gas (GHG) emissions, tackling climate change, managing air emissions and waste in alignment with circular economy principles, ensuring responsible water sourcing, preserving biodiversity, and upholding the highest standards of Corporate Social Responsibility (CSR). These efforts underscore our firm belief in the importance of sustainable development and our resolve to make meaningful contributions towards a greener and more equitable future.
Being part of Ambuja Cements has opened up new avenues for our Company to excel and achieve levels of success that were previously beyond our reach. The Master Supply Agreement (MSA) forged as part of this acquisition is poised to become the cornerstone of our strategy for delivering superior performance. By ramping up our capacity utilisation to approximately 80%, in line with Ambuja’s standards, compared to a mere 25% prior to the acquisition, we anticipate a substantial surge in our production volumes. This, coupled with the anticipated increase in sales volumes, is expected to have a cascading effect on our EBITDA, projecting a remarkable turnaround from a negative 32% for half -year ended September 30, 2023 to a projected 9%. These figures underscore the transformative impact of the acquisition on our operational efficiency and financial performance, positioning us for sustained growth and profitability in the years ahead.
At SIL, we recognise the profound importance of Environmental, Social, and Governance (ESG) principles in driving sustainable business practices. Our commitment to ESG is unwavering, as we understand its pivotal role in fostering long-term value creation and stakeholder trust. Moving forward, we remain dedicated to upholding the highest standards across all facets of ESG. From environmental stewardship to social responsibility and corporate governance, we will continue to prioritise initiatives that positively impact our planet, communities, and organisational integrity. Our journey towards comprehensive ESG excellence is ongoing, and we are steadfast in our resolve to continually improve and innovate in this crucial domain.
I want to take the opportunity to reaffirm to all the stakeholders that we will leverage the synergies of Adani, Ambuja Cements and ACC and will take it to the next level. On behalf of the Board of Directors, I want to thank everyone for your trust in the Company for all these years. We are certain that this is just the beginning of the greater things to come.
Regards,
Chief Executive Officer