New Delhi (Agency): In a new development, the Adani-owned Ambuja Cements has announced the acquisition of Sanghi Industries, sparking strong criticism from India’s Congress party. This acquisition is part of the ‘Hum Adani ke Hain Kaun’ series, a term used by the Congress to criticize the Central government’s dealings with the Adani Group.
Jairam Ramesh, Congress General Secretary in-charge of Communications, released a statement detailing the timeline of the acquisition. He alleged that Shree Cement, India’s third-largest cement producer, had been in talks to acquire Sanghi Industries. However, after the Income Tax Department launched raids against Shree Cement, the company exited the race. Within a month, the “Adani-owned” Ambuja Cements acquired Sanghi Industries.
Ramesh provided specific details: “The latest episode involves the takeover of Sanghi Industries by the Adani-owned Ambuja Cements. Aap Chronology Samajhiye. April 28, 2023, India’s third-largest cement producer Shree Cement is reported to be in talks to acquire Sanghi Industries, On June 21, 2023, Income Tax Department launches raids against Shree Cement at five locations, On 19 July 2023, Shree Cement exits race to acquire Sanghi Industries, and on August 3, 2023, the Adani-owned Ambuja Cements announces it has acquired Sanghi Industries.”
Sanghi Industries operates India’s largest single-location cement and clinker plant in Sanghipuram, Gujarat. The associated Sanghipuram Port is seen as an essential addition to Adani’s port monopoly. Ramesh’s statement also accused Prime Minister Modi of actively supporting the Adani Group, saying, “Given its importance for his close friends, PM Modi has left no stone unturned to ensure control of these assets by the Adani Group.”
The Congress party’s allegations go further, accusing the government of a longstanding pattern of misusing investigative agencies to favor the Prime Minister’s close associates. The statement reads: “Agencies like the ED and CBI are not only being used to break apart opposition parties and bring down opposition-ruled governments, with 95 per cent of investigations aimed against opposition leaders. Prized assets like Mumbai airport, Krishnapatnam Port and, now, Sanghi Industries are being handed over to the Adani Group following raids by these agencies.”
Ambuja Cements Ltd (ACL), part of the diversified Adani Group, announced the acquisition of Sanghi Industries Ltd (SIL) on Thursday at an enterprise value of Rs 5,000 crore (approximately $670 million).
This acquisition and the strong allegations by the Congress party are likely to heat up political discussions in India. The opposition sees this acquisition as evidence of a corrupt relationship between the government and one of India’s most powerful business conglomerates. The government’s response and further details of the acquisition are awaited, and this situation could potentially escalate into a major political controversy. Observers will be closely watching how this development affects both the business landscape and the political climate in the coming weeks.
