Ambuja Cements to invest 14,500 crore to lift capacity to 155 mn tonnes by FY30

what happened

Ambuja Cements, India's second-largest cement producer, said on Monday that it will invest 14,500 crore to add 30 million tonnes of capacity, about a quarter, taking the total to 155 million tonnes by FY30. The information was reported by Moody's. In 2022, the Adani Group had targeted 140 million tonnes by the end of FY28. In November last year the target was raised to 155 million tonnes, and in May this year the deadline was moved to FY30.

CEO Vinod Bahety said the next phase of expansion is “focused on quality of growth and creating a more balanced manufacturing network.” He said the company will strengthen the link between clinker and grinding capacity and move closer to key high-growth markets. Bahety added that the new capacity will help increase market share and reduce manufacturing costs through higher efficiency.

In this phase, Adani Cement will add capacity in Assam, Bihar, Jharkhand, Gujarat, Maharashtra and Uttar Pradesh. It currently runs 24 integrated plants and 24 grinding units with total capacity of 113.5 million tonnes. UltraTech Cement, the country's largest producer, has more than 200 million tonnes of capacity and targets over 240 million tonnes by the end of FY28.

why it matters

The investment plan intensifies competition in India's cement market, where the largest producers are fighting for share and lower costs. For investors, the timing and size of the spending matter, since they depend on demand from construction and infrastructure.

market impact

Indian cement makers: Ambuja's capacity growth adds competitive pressure on UltraTech

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