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."
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.
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."
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
high-interest-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,
Mr Ajay Kapur
Chairman