Ambuja Cements plans Rs 14,500 crore expansion to add 30 MTPA capacity

Ambuja Cements Limited has planned an expansion programme involving an investment of around Rs 14,500 crore to add approximately 30 million tonnes per annum (MTPA) of cement capacity across key markets, as the company looks to strengthen its manufacturing presence in eastern, western and northern India.

Ambuja Cements Limited has planned an expansion programme involving an investment of around Rs 14,500 crore to add approximately 30 million tonnes per annum (MTPA) of cement capacity across key markets, as the company looks to strengthen its manufacturing presence in eastern, western and northern India. The company, in an official statement on Monday, stated that the proposed expansion will take its total cement capacity to 155 MTPA by FY30 from the current 113.5 MTPA. The company currently operates across 24 integrated plants and 24 grinding units.

The expansion will include new grinding capacities of around 15.5 MTPA in the West Cluster, 11.6 MTPA in the East Cluster and 2.9 MTPA in the North Cluster. In the eastern region, the company plans to add capacities at Rangia and Hojai in Assam, Godda in Jharkhand and Muzaffarpur in Bihar. In the western region, new capacities are planned at Mundra and Hazira in Gujarat, and Raigad, Kalyan, Dahanu and Amravati in Maharashtra. The northern expansion includes Dadri Line 2 in Uttar Pradesh.

The programme will also include additional clinker capacity of 4 MTPA at Umrangso in Assam, 4 MTPA at Maratha and 2.3 MTPA at Mundra. These additions are aimed at strengthening the upstream network needed to support the expanded grinding capacity. Vinod Bahety, CEO – Cement Business, Adani Group, said the expansion was focused on improving the company's manufacturing network and bringing production facilities closer to high-growth markets.

"Our next phase of expansion is focused on quality of growth and creating a more balanced manufacturing network. By strengthening the link between clinker and grinding capacity and expanding closer to the high-growth potential key markets, we are building greater flexibility into the network," Bahety said. He added that the company expects the expansion and additional debottlenecking initiatives to help improve manufacturing efficiencies, reduce logistics costs and strengthen its competitiveness.

The company has also set a target of achieving a cost of Rs 4,000 PMT by FY28. According to Bahety, locating facilities closer to markets will help reduce lead distance and transportation costs.

The new expansion programme builds on capacity additions already completed and under execution. During H1 FY27, Ambuja added 4.6 MTPA through expansions at Dahej in Gujarat, Salai Banwa in Uttar Pradesh and Kalamboli in Maharashtra, taking its total cement capacity to 113.5 MTPA. Another 5.6 MTPA is expected to be commissioned or ramped up during H2 FY27. This includes 3.2 MTPA across Bathinda in Punjab and Jodhpur Penna in Rajasthan, along with the 2.4 MTPA Warisaliganj grinding unit in Bihar.

With these additions, the company's total cement capacity is expected to reach 119 MTPA by March 2027. Since the acquisition, Ambuja has completed 11 capacity projects, adding 16.3 MTPA of cement capacity and 9.0 MTPA of clinker capacity up to September 30, 2026.

The latest expansion represents the next phase of the company's growth plan to increase its manufacturing scale and strengthen its presence across key markets. Ambuja Cements Limited is the 9th largest cement company globally, a key part of the diversified Adani Portfolio. (ANI)