Ambuja Cement's strategic plan on track to expand capacity at 50 MTPA

Ambuja Cements Ltd has said it is looking at significant debottlenecking opportunities across all plants with growth plans in mid-term to reach 50 million tonnes per annum capacity

Ambuja Cements Ltd, a part of the global conglomerate LafargeHolcim, has said it is looking at significant debottlenecking opportunities across all plants with growth plans in mid-term to reach 50 million tonnes per annum capacity.

At present, it has a cement capacity of 29.65 million tonnes with five integrated manufacturing plants and eight grinding units across the country.

Ambuja's upcoming facility at Marwar Mundwa in Rajasthan will enhance clinker capacity by 3 MTPA and help improve cement sales by 5 MTPA, contributing to the long-term strategy of capacity expansion, said Chairman Martin Kriegner.

"The greenfield integrated plant at a total investment of Rs 2,350 crore will commence operations by Q3 2021. Ambuja is also evaluating brownfield expansions in Bhatapara and Maratha plants," he said at the company's 38th annual general meeting conducted virtually late on Friday.

Kriegner said Ambuja has a robust roadmap to become the best in industry with strategic priorities structured under key levers of growth, competitiveness, innovation, digitalisation and sustainability.

The company's operating EBITDA grew by 23 per cent to Rs 2,647 crore and net profit grew by 17 per cent to Rs 1,790 crore in 2020. Operating EBITDA and net profit margin for the year stood at 23.7 per cent and 16 per cent respectively, reporting a growth of 480 basis points and 260 basis points over 2019.

"The strong performance was delivered through several cost management and efficiency initiatives. During the year, Ambuja leveraged synergies with ACC to drive scale and performance," said Kriegner.

"This synergy under the master supply agreement with ACC led to more than 5 per cent contribution profit before tax in 2020. Ambuja Cement has a robust balance sheet with zero debt and AAA rating from Crisil."

The company's board of directors has declared an interim dividend of Rs 17 per share and recommended a final dividend of Re 1 per share, which was approved by the shareholders in AGM. Thus, the aggregate dividend for the year is Rs 18 per share and the total pay-out will be Rs 3574.16 crore.

Ambuja said its Sustainable Development Plan 2030 has a sharp focus on climate and energy, building a circular economy, conserving resources and nature, and driving meaningful change in the lives of communities.

It aims to reduce CO2 to 463 kg CO2/t cem. Ambuja targets to reuse 13.5 million tonnes of waste and be 13 times water positive. It aims to save 77 litre per tonne of cementitious of water and positively impact the lives of 80 lakh beneficiaries through its various CSR programmes.