Ambuja Cement Boosts Limestone Reserves and Eyes Growth with Ambitious Expansion Plans

Ambuja Cement has significantly expanded its limestone reserves by 275 million tonnes in the April-June quarter. The Adani Group's cement arm reported robust financial performance and detailed future expansion plans, including increased green power use and upcoming acquisitions.

Ambuja Cement has added 275 million tonnes to its limestone reserves in the April-June quarter, as revealed in its recent earnings report. The company, part of the Adani Group, has witnessed substantial growth due to strategic cost leadership and improved operational efficiencies.

In his statement, Ajay Kapur, Whole Time Director and CEO of Ambuja Cements, emphasized their commitment to innovation, digitization, and customer satisfaction. 'Our focus on ESG is central to our performance,' he said. Kapur also highlighted that with the impending Penna acquisition, capacity is projected to rise to 89 MTPA by Q2 FY'25 and reach 140 MTPA by FY'28.

The company's green power contribution was 18.4% for the quarter, with plans to increase it to 31% by the end of 2024-25 and 60% by 2027-28, reducing power costs by 33%. Financially, Ambuja’s net worth rose by ₹8,620 crore to ₹59,465 crore, maintaining debt-free status. 'Revenue has grown to ₹8,311 crores, with operating costs down by 3% to ₹4,437 per tonne,' Kapur noted.

Expansion efforts are on track with brownfield projects at 14 sites. Key projects include a 4 MTPA clinker line in Chhattisgarh and multiple grinding facilities, expected to be operational by FY'25. Ambuja's integration with ACC Ltd. and Sanghi Industries Ltd. has boosted the Adani Group's cement capacity to 78.9 MTPA. Recently, Ambuja entered a binding agreement to acquire Penna Cement, aiming to further enhance its market presence.