In today’s briefing:
- Adani’s Ambuja Cement Acquisition of Sanghi Cement Raises Questions Amidst Favorable Terms
Adani’s Ambuja Cement Acquisition of Sanghi Cement Raises Questions Amidst Favorable Terms
- Adani’s $600 million acquisition of Sanghi Cement in August 2023 marked its significant debut in the cement sector, following controversies around the group’s infrastructure ventures.
- The Master Supply Agreement with Ambuja & pricing structure, based on cost plus a 10% markup, has raised concerns about lower EBITDA realizations for Sanghi Cement, deviating from industry norms.
- Issues surrounding potential profit loss (Rs 357 crore) and investor skepticism echo previous instances, like the NDTV case, where minority shareholders experienced less favorable terms compared to the promoter.
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