Ambuja Cements Plans Rs.14,500 Crore Expansion for MTPA Capacity
Ambuja Cements Limited announced it has solidified its upcoming expansion phase, intending to implement new greenfield and brownfield projects to increase cement capacity by 30 MTPA in significant markets, with a total growth capital expenditure plan of approximately Rs 14,500 crore.
The initiative will broaden its production network in rapidly growing markets in the East, West, and North, enhancing its existing 113.5 MTPA cement capacity throughout 24 integrated facilities and 24 grinding units, stated the company, which belongs to the Adani Portfolio and is a prominent provider of building materials solutions in India.
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"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,” says Vinod Bahety, CEO – Cement Business, Adani Group.
The suggested expansion will increase its capacity to 155 MTPA by FY30.
“As we scale, our focus is on combining market reach with logistics and cost efficiencies so that every capacity addition strengthens the competitiveness of the overall business. We have a vibrant supply chain ecosystem with stronger Brand Equity and share of Premium Cement in these markets. The growth footprint will compliment well with our value-based strategic growth,” Bahety noted.
The growth entails additional grinding capacities of 15.5 MTPA in the West Cluster, 11.6 MTPA in the East Cluster, and 2.9 MTPA in the North Cluster.
“Apart from increasing market share, these capacities will also help to reduce manufacturing cost by bringing higher efficiencies. Being closer to the market, it will also help in reducing lead distance and thereby logistics cost. In all, it will pave the journey to achieve a cost of Rs 4,000 PMT by FY28,” said Bahety.
The initiative also features additional clinker capacity in the East cluster at Umrangso (4 MTPA), the West cluster at Maratha (4 MTPA), and Mundra (2.3 MTPA), enhancing the upstream network necessary to back the broadened grinding presence.
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In H1 FY27, the firm increased its capacity by 4.6 MTPA via the 1.2 MTPA brownfield expansion at Dahej in Gujarat, the newly established 2.4 MTPA Salai Banwa Grinding Unit in Uttar Pradesh, and a 1.0 MTPA brownfield expansion at Kalamboli in Maharashtra, bringing total cement capacity to 113.5 MTPA.
The upcoming pipeline will enhance this foundation, adding another 3.2 MTPA with Bathinda GU (1.2 MTPA) in Punjab (North cluster) and Jodhpur Penna IU (2 MTPA) in Rajasthan, stabilized and anticipated to increase in H2 FY27.
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Moreover, the Warisaliganj GU (2.4 MTPA) located in Bihar (East Cluster) is set to be operational in H2 FY'27. The total capacity of the company is anticipated to hit 119 MTPA by the conclusion of March 2027.
Following the acquisition, Ambuja has finalized 11 capacity projects, contributing 16.3 MTPA of cement capacity and 9.0 MTPA of clinker capacity by September 30, 2026.