Dear Shareholders,
As we reflect on the FY 2023-24, I am delighted to address you with a sense of pride and accomplishment. This year has been transformative, challenging us to re-evaluate our approach to business and synergies holistically. We reinforced our commitment to fuel India’s growth by increasing our footprint through inclusion of Sanghi Industries Limited (SIL) as a part of Ambuja Cements and Adani portfolio, which significantly propels us towards fulfilling our goal.
The Master Supply Agreement (MSA) between SIL and Ambuja Cements resulting from the acquisition is anticipated to serve as a primary growth catalyst for SIL in the foreseeable future. This strategic alliance is poised to elevate SIL’s capacity utilisation to approximately 80%, bringing it on par with the Group’s capacity, a substantial increase from the meagre 25% previously.”
Key areas of focus encompass reducing Greenhouse Gas (GHG) emissions, managing air emissions and waste in accordance with circular economy principles, responsible water sourcing, biodiversity preservation, and upholding Corporate Social Responsibility standards, among others.”
Echoing the ethos of the Adani Group, SIL is committed to aligning its Environmental, Social, and Governance (ESG) goals with those of the Group, contributing to the fulfilment of the nation’s priorities.
The Adani Group has remained focused in its commitment to fostering the growth trajectory of India, endeavouring to bolster efforts aimed at realising the nation’s ambition of attaining a USD 5 trillion economy. In alignment with the government’s concerted initiatives toward infrastructural development, SIL will unlock value by exclusively supplying to Ambuja and ACC, mitigating the demand volatility that SIL has historically encountered.
The persistent working capital constraints experienced by SIL have been effectively addressed through the infusion of funds from Ambuja Cements, enabling substantial deleveraging of SIL’s debt-laden balance sheet through the repayment of highinterest- bearing secured debts. Furthermore, Ambuja Cements and ACC will provide advance payments for SIL’s cement, alleviating liquidity challenges faced by SIL.
The Master Supply Agreement (MSA) between SIL and Ambuja Cements resulting from the acquisition is anticipated to serve as a primary growth catalyst for SIL in the foreseeable future. This strategic alliance is poised to elevate SIL’s capacity utilisation to approximately 80%, bringing it on par with the Group’s capacity, a substantial increase from the meagre 25% previously. Additionally, the MSA is projected to reverse SIL’s EBITDA trajectory, transitioning from a negative 32% for half-year ended September 30, 2023 to a projected 9%.
Echoing the ethos of the Adani Group, SIL is committed to aligning its Environmental, Social, and Governance (ESG) goals with those of the Group, contributing to the fulfilment of the nation’s priorities.
As an integral part of Ambuja Cements, a leading player in the cement industry, we are steadfast in our commitment to conducting operations responsibly, with an unwavering focus on sustainability and innovation. Our dedication to sustainability is exemplified through the introduction of environmentally responsible products and our steadfast adherence to sustainable business practices. Key areas of focus encompass reducing Greenhouse Gas (GHG) emissions, managing air emissions and waste in accordance with circular economy principles, responsible water sourcing, biodiversity preservation, and upholding Corporate Social Responsibility standards, among others.
Echoing the ethos of the Adani Group, SIL is committed to aligning its Environmental, Social, and Governance (ESG) goals with those of the Group, contributing to the fulfilment of the nation’s priorities.
As we embark on this promising journey, I am filled with profound optimism about the path ahead, confident that it will be one that we can all take pride in. We sincerely hope for your steadfast support as we usher in this new phase for Sanghi Industries Limited.
Regards,
Chairman