The new unit of 1.2 million tonnes per annum (MTPA) capacity will increase Sanghi's cement production capacity to 4.1 MTPA from 2.9 MTPA at present.
The company has invested around Rs 125 crore in this new facility, a company release said.
Patel also laid foundation stone for a 15 Mega Watt (MW) Waste Heat Recovery System (WHRS), which will recycle waste heat generated in the cement plant and convert it into power.
The company will invest Rs 150 crore to develop this green energy project and expects to commission it in next two years.
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The Gujarat CM was accompanied by Chairman and Managing Director of Sanghi Industries Ravi Sanghi and directors Aditya Sanghi and Alok Sanghi.
Alok Sanghi said that company is committed to reduce carbon footprint and at the same time increase productivity.
"Our focus is on increasing efficiencies at our manufacturing facility as well as reducing our carbon footprint by cutting down on pollutants. The new grinding unit would increase our productivity, while the WHRS would reduce our costs and greenhouse gas emissions," Alok said.