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Ambuja Cements Announces Major Expansion with 30 MTPA Capacity Increase

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Ambuja Cements Limited, a prominent entity within the Adani Portfolio, has unveiled an ambitious expansion plan to bolster its manufacturing capabilities by approximately 30 million tonnes per annum (MTPA). This strategic initiative aims to enhance the company’s presence across key markets in India, specifically targeting the East, West, and North regions. The expansion is set to increase Ambuja’s total cement capacity from the current 113.5 MTPA to 155 MTPA by the fiscal year 2030.

The expansion programme encompasses both greenfield and brownfield projects, with new grinding capacities planned in Assam, Bihar, Jharkhand, Gujarat, Maharashtra, and Uttar Pradesh. The West Cluster will see an addition of 15.5 MTPA, the East Cluster 11.6 MTPA, and the North Cluster 2.9 MTPA. This initiative also includes new clinker capacities in Assam, Gujarat, and Maharashtra, which are essential for supporting the expanded grinding operations.

Vinod Bahety, CEO of the Cement Business at Adani Group, emphasised the strategic focus on quality growth and a balanced manufacturing network. The expansion is designed to align closer with high-growth potential markets, thereby enhancing logistics and cost efficiencies. The company aims to achieve a cost of ₹4,000 per metric tonne by FY28, leveraging proximity to markets to reduce logistics costs and increase competitiveness.

Ambuja Cements has already made significant strides in its expansion journey, having added 16.3 MTPA of cement capacity and 9.0 MTPA of clinker capacity since its acquisition. The company is poised to reach a total capacity of 119 MTPA by March 2027, with further projects in the pipeline. Analysts view this expansion as a strategic move to consolidate Ambuja’s market position and drive cost efficiencies, amidst a competitive landscape in the Indian cement industry.

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