Piramal Enterprises has invested Rs. 256 crore in Sanghi Industries, a Kutch-based cement company with production capacity of 4.1 million tonnes a year(mtpa).
The investment made through non-convertible debentures would enable Sanghi to repay some of its debts ahead of schedule and save on interest outgo. Earlier, Ajay Piramal has shown interest in bidding for the 11 mtpa cement asset put on the block by Lafarge. Ever since Piramal sold his flagship pharma business for a whopping $3.8 billion some six years ago, he has been scouting for investment opportunities and now seems bullish on the cement sector on the back of the government’s enhanced spending in infrastructure. Sanghi Industries’ production capacity accounts for about 16 per cent of Gujarat’s production capacity. It also plans to add another four mtpa on the surplus land at its existing plant.