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Ambuja Cements Plans ₹14,500 Crore Investment to Boost Cement Capacity by ~30 MTPA by FY30

Expansion includes new grinding and clinker units in Assam, Bihar, Gujarat, Maharashtra, Uttar Pradesh and Jharkhand, raising capacity to 155 MTPA

Ambuja Cements announces a major growth phase with a ₹14,500 crore expansion program to increase cement capacity by ~30 million tonnes per annum across East, West, and North India, raising total capacity to 155 MTPA by fiscal year 2030. This expansion includes new grinding and clinker units in key states, aiming to enhance manufacturing efficiency and reduce logistics costs.

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Ambuja Cements LimitedAMBUJACEM500425Capacity Expansion

Ambuja Cements Limited

Capacity Expansion

Ambuja Cements Limited has announced a significant expansion plan with an investment of around ₹14,500 crore to add approximately 30 million tonnes per annum of cement capacity across key Indian markets, elevating its total capacity to 155 MTPA by fiscal year 2030.

The expansion program covers 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, including plants in Assam, Bihar, Jharkhand, Gujarat, Maharashtra, and Uttar Pradesh.

New clinker capacities totaling 10.3 MTPA will be added at locations such as Umrangso in Assam, Maratha and Mundra in the West cluster, supporting the expanded grinding network.

During the first half of fiscal year 2027, Ambuja has already commissioned 4.6 MTPA capacity and expects an additional 5.6 MTPA to come online by the end of March 2027, reaching 119 MTPA total capacity.

Since acquisition by the Adani Group, Ambuja has completed 11 capacity projects, adding 16.3 MTPA of cement and 9.0 MTPA clinker capacity till September 2026.

The expansion aims to improve manufacturing efficiency, reduce logistics costs by being closer to markets, and achieve a manufacturing cost target of ₹4,000 per metric tonne by fiscal year 2028.

Highlights

  • Total growth capex program is about ₹14,500 crore.
  • Current capacity of 113.5 MTPA will rise to 155 MTPA by FY30.
  • New grinding capacities include Mundra (2.9 MTPA), Rangia (2.9 MTPA), and Dadri Line 2 (2.9 MTPA).
  • Clinker capacities to be added: Umrangso (4 MTPA), Maratha (4 MTPA), Mundra (2.3 MTPA).
  • 119 MTPA capacity expected by March 2027 with ongoing expansions.
  • Focus on reduced logistics cost and improved manufacturing efficiency.

Key Data Snapshot

Current cement capacity113.5 MTPA
Planned expansion capacity~30 MTPA
Total capacity target by FY30155 MTPA
Total growth capex₹14,500 crore
New clinker capacity at Umrangso, Assam4 MTPA
New clinker capacity at Maratha, West cluster4 MTPA
New clinker capacity at Mundra, West cluster2.3 MTPA
Grinding capacity additions in West Cluster15.5 MTPA
Grinding capacity additions in East Cluster11.6 MTPA
Grinding capacity additions in North Cluster2.9 MTPA
Capacity commissioned in H1 FY274.6 MTPA
Additional capacity expected in H2 FY275.6 MTPA
Target manufacturing cost per metric tonne by FY28₹4,000 PMT

What happened

  • Ambuja Cements has announced a ₹14,500 crore investment to expand cement capacity by approximately 30 MTPA across key Indian markets by fiscal year 2030.
  • The expansion involves both greenfield and brownfield projects including new grinding and clinker units.

Key details

  • Expansion includes new grinding units in Assam, Bihar, Jharkhand, Gujarat, Maharashtra, and Uttar Pradesh.
  • New clinker capacities are planned across the East and West clusters to support expanded grinding capacities.
  • As of H1 FY27, 4.6 MTPA capacity was commissioned, with 5.6 MTPA further expected by March 2027, raising total capacity to 119 MTPA.

Strategic context

  • The capacity growth aims to improve supply chain flexibility, reduce manufacturing and logistics costs, and strengthen presence in high-growth regions.
  • The program builds on recent capacity expansions completed since Ambuja's acquisition by the Adani Group.

Background and context

  • Ambuja Cements currently operates 24 integrated plants and 24 grinding units across India with 113.5 MTPA capacity.
  • The company is part of the Adani Group portfolio, focusing on sustainable growth and net-zero targets by 2050.

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Ambuja Cements Plans ₹14,500 Crore Investment to Boost | Stockk News