Ambuja makes 30% of cement used in infra, housing projects in India: CEO

Ambuja Cements, now a key part of the Adani Group, has surpassed 100 MTPA capacity and plans to reach 140 MTPA by FY28, driven primarily by brownfield expansions

Ambuja Cements accounts for nearly 30 per cent of the cement used in housing and infrastructure projects in India, the company, part of the Adani Group, stated in its annual report.

 

The company, the second-largest cement maker in India, has surpassed 100 million tonnes per annum (MTPA) of cement capacity in FY25 and is targeting 118 MTPA by financial year 2025–26 (FY26) and 140 MTPA by FY28. The expansion will be primarily driven by brownfield projects.

 

According to Ambuja Cements Chief Executive Officer Vinod Bahety, “Ambuja Cements, now a core part of the Adani Group's cement business, contributes to nearly 30 per cent of India's homes and infrastructure. This is a story of resilience fuelled by a growth mindset – a journey that marries legacy with innovation and is inspired by a clear and purposeful vision.”

 

 

Bahety added, “A key catalyst behind this success has been our series of efficient and timely acquisitions, each completed with precision and synergy. Alongside inorganic growth, our organic expansion projects continue to gain strong momentum across the country, bringing us closer to our ambitious long-term target of reaching 140 MTPA by 2028.”

 

The company became the ninth-largest cement producer globally in FY24 after crossing 100 MTPA in consolidated capacity. The Adani Group entered the cement industry in September 2022 with the acquisition of Ambuja Cements from Switzerland-based Holcim for $6.4 billion.

 

Since then, Ambuja Cements has pursued inorganic growth by acquiring Penna Cement, Sanghi Industries, and Orient Cement. It holds a 51 per cent stake in ACC Ltd. 

 

The company said, “Having achieved nearly 50 per cent growth in just 30 months, our roadmap is clear: reaching 118 MTPA by FY26 and 140 MTPA by FY28, primarily through brownfield expansion projects.”

 

Key projects planned for FY26 include clinker and grinding units at Bhatapara, Sankrail, Sindri, Salai-Banwa, Dahej, Marwar, Kalamboli, Krishnapatnam, Bathinda, Jodhpur, Maratha, and Warisaliganj. Ambuja Cements is also progressing on nine grinding unit projects beyond FY26.

 

In FY25, the company reported 65.2 million tonnes in sales volume, ₹35,045 crore in revenue, and ₹5,158 crore in profit after tax. Bahety said, “Our strong balance sheet, marked by a debt-free status, underscores our prudent capital allocation and financial discipline.”

 

The company is focusing on logistics cost optimisation and green energy. “By shifting a significant portion of our freight to seaborne transport, optimising depot locations, and leveraging GPWIS and BCFC rakes, we have achieved a 6 per cent reduction in logistics costs to date,” Bahety said. Ambuja Cements targets a further 15 per cent logistics cost reduction by FY30.

 

It aims to power 60 per cent of future cement capacity and 83 per cent of clinker operations with green energy.

 

The company projects significant industry growth, estimating installed cement capacity in India to reach 850 MTPA by 2030 and 1,350 MTPA by 2050.

 

UltraTech Cement, the largest cement firm in India, currently has a capacity of 183.06 MTPA and is also expanding through acquisitions.