Ambuja Cements Prioritizes Project Completion Over New Ventures Amid Capacity Milestone

Ambuja Cements focuses on completing current projects over new ones, setting a moderate capital expenditure for FY27 following delays due to contractor and engineering setbacks. Emphasizing organic growth, the firm aims to streamline operations and expand capacity through brownfield projects, despite recent disruptions in acquired assets.

Ambuja Cements has announced it will focus on completing existing projects instead of embarking on new ones, following delays attributed to contractor and engineering challenges. This shift is reflected in its moderate FY27 capital expenditure forecast of Rs 6,000-6,500 crore, down from Rs 7,500 crore last year.

Director Karan Adani addressed these issues during a post-earnings investor call, citing the selection of underperforming contractors and the absence of a ready execution team as primary factors for the setbacks. The company now plans a six-month engineering phase before project execution to enhance completion timelines.

Despite operational challenges, Ambuja Cements is committed to organic growth and greenfield expansion. It's aiming to hit a 140 MTPA capacity target by FY28 through brownfield initiatives, while also addressing reliability and cost issues in newly acquired assets like Penna and Sanghi plants.