Adani Cement Targets 45-50% Profit Growth in 5 Years
Cement

Adani Cement Targets 45-50% Profit Growth in 5 Years

Adani Cement, part of the Adani Group and the second-largest cement manufacturer in India due to its acquisitions of ACC and Ambuja Cements, is set to enhance profitability by 45-50% over the next five years, according to CEO Ajay Kapur. The company intends to achieve this growth by constructing new capacities with cost advantages and implementing strategic initiatives to enhance the existing plant's profitability.
Kapur stated that the target Ebitda (earnings before interest, tax, depreciation, and amortisation) per tonne is projected to rise from ₹1,000 to ₹1,450-1,500 over the coming five-year cycle. The current Ebitda margin of 20% is expected to improve to 25%. Adani Cement plans to double its capacity to 140 million tonnes within five years, requiring an estimated capital expenditure of Rs 470 billion.
Kapur emphasised the importance of cost efficiency, aiming to position the company as a low-cost cement producer globally during its expansion to 140 million tonnes. Initiatives are expected to result in savings of Rs 300-400 per tonne over 36 months, with additional cost advantages expected from the new capacities and improved logistics.
The company's ambitious targets also include achieving sales volume of 120 million tonnes, revenue of Rs 700 billion, and operating profit of Rs 175 billion by March 2028. Funding for the capacity expansion will come from operating profits and cash equivalents, with Adani Cement's capacity set to exceed 100 million tonnes by the end of 2025.

Adani Cement, part of the Adani Group and the second-largest cement manufacturer in India due to its acquisitions of ACC and Ambuja Cements, is set to enhance profitability by 45-50% over the next five years, according to CEO Ajay Kapur. The company intends to achieve this growth by constructing new capacities with cost advantages and implementing strategic initiatives to enhance the existing plant's profitability.Kapur stated that the target Ebitda (earnings before interest, tax, depreciation, and amortisation) per tonne is projected to rise from ₹1,000 to ₹1,450-1,500 over the coming five-year cycle. The current Ebitda margin of 20% is expected to improve to 25%. Adani Cement plans to double its capacity to 140 million tonnes within five years, requiring an estimated capital expenditure of Rs 470 billion.Kapur emphasised the importance of cost efficiency, aiming to position the company as a low-cost cement producer globally during its expansion to 140 million tonnes. Initiatives are expected to result in savings of Rs 300-400 per tonne over 36 months, with additional cost advantages expected from the new capacities and improved logistics.The company's ambitious targets also include achieving sales volume of 120 million tonnes, revenue of Rs 700 billion, and operating profit of Rs 175 billion by March 2028. Funding for the capacity expansion will come from operating profits and cash equivalents, with Adani Cement's capacity set to exceed 100 million tonnes by the end of 2025.

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Next Story
Infrastructure Transport

Buying a TBM?

Tunnel-boring machines (TBMs) are increasingly being used in India for metro, rail and other infrastructure projects. Choosing the right TBM is vital to work efficiently, speedily and safely. Here’s a guide on how to make the right choice.Geological compatibilityTBMs are specifically designed and customised to suit the unique geological and geotechnical conditions of the area where tunnelling will take place. So, an extensive and thorough geotechnical investigation is conducted prior to the machine’s design and fabrication. “The tunnelling company accurately compiles soil sampling f..

Next Story
Real Estate

Kitchen Dynamics

Modular kitchen design trends lean towards sustainability, smart technology integration, minimalist aesthetics and multifunctional spaces, says Rajkumar Kumawat, Founder and Principal Architect, Rajkumar Architects.Noticeable designs“A shift towards warm minimalism, where clean lines are balanced with tactile finishes such as fluted wood, brushed metals and muted stone surfaces, is a noticeable trend,” says Harkaran Singh Boparai, Founder and Principal Architect, Harkaran Boparai Studio. “Also, matte lacquers in deep, earthy tones are replacing gloss finishes, bringing a s..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?