In a bid to strengthen its presence in the cement industry, Adani-owned Ambuja Cements is all set to acquire a majority stake in operations of Sanghi Industries, reported Reuters.

The deal is likely to be announced by the two company on Wednesday, reported Reuters citing sources. Till now the exact stake percentage and the transaction amount is not known. Shares of Ambuja Cements closed 0.25% lower at 461.60 apiece on BSE on Tuesday. Its value has declined by 12.32% YTD and by 22.99% in last one year. According to the Reuter’s report, the deal was locked by considering Sanghi’s enterprise value at 60 billion rupees ($729 million). Earlier, it was reported by the Economic Times that Adani is the frontrunner in the race to acquire Sanghi, which was being appraised at that enterprise value. Adani Group did not respond to a request for comment. Sanghi Cement declined to comment. Enjoying the position of India’s second largest cement producer after UltraTech Cement, Adani owns Ambuja and Ltd. The combined capacity of producing cement is more than 65 million tonnes and more than a dozen manufacturing plants across India. Enjoying its dominance in Gujarat, Sanghi holds a production capacity of 6.1 million metric tonnes per annum. A spokesperson for the Adani Group told Reuters that cement was a key focus area and there were plans to explore multiple greenfield opportunities.