Ambuja Cement secures 24 limestone mines in FY24
Cement

Ambuja Cement secures 24 limestone mines in FY24

Ambuja Cements, a firm under the Adani group's umbrella, has been actively pursuing expansion efforts. According to the company's annual report, it has secured 24 bids for new limestone mines, which are estimated to hold a total resource of 587 million tonnes of limestone.

Additionally, last November, the Adani-owned firm acquired Sanghi Industries, based in Saurashtra, which boasted reserves of 1 billion tonnes of limestone, valued at Rs 5,185 crore.

The company emphasized the importance of winning bids for coal and limestone mines to achieve self-sufficiency. It pointed out that coal mines in Dahegaon-Gowari and the existing Gare Palma coal block currently cater to 40% of Ambuja Cements Ltd (ACL)'s coal requirements.

The Adani group has set a goal to reach a capacity of 140 million tonnes per annum (MTPA) by 2028, leveraging its ample cash reserves for brownfield expansions and acquisitions.

Recently, the group announced the acquisition of Penna Cement based in Hyderabad, valued at Rs 10,422 crore. This acquisition will add 14 MTPA to ACL's capacity, bringing it to a total of 89 MTPA. The transaction, completed entirely in cash, aims to strengthen ACL's market position in the South and facilitate entry into Sri Lanka.

During an analyst call following the acquisition, ACL's CFO Vinod Bahety indicated that even after this substantial investment, the company would still hold approximately Rs 10,000 crore in cash by year-end.

Bahety explained, "Given our strong cash position, the acquisition of Penna Cement represents a strategic deployment of our resources, yielding a return on capital employed of more than 15%."

He further projected, "The entire acquisition will be financed through our existing cash reserves. Even after this, I estimate that we will retain over Rs 10,000 crores in cash by the end of this year."

Ambuja Cements, a firm under the Adani group's umbrella, has been actively pursuing expansion efforts. According to the company's annual report, it has secured 24 bids for new limestone mines, which are estimated to hold a total resource of 587 million tonnes of limestone. Additionally, last November, the Adani-owned firm acquired Sanghi Industries, based in Saurashtra, which boasted reserves of 1 billion tonnes of limestone, valued at Rs 5,185 crore. The company emphasized the importance of winning bids for coal and limestone mines to achieve self-sufficiency. It pointed out that coal mines in Dahegaon-Gowari and the existing Gare Palma coal block currently cater to 40% of Ambuja Cements Ltd (ACL)'s coal requirements. The Adani group has set a goal to reach a capacity of 140 million tonnes per annum (MTPA) by 2028, leveraging its ample cash reserves for brownfield expansions and acquisitions. Recently, the group announced the acquisition of Penna Cement based in Hyderabad, valued at Rs 10,422 crore. This acquisition will add 14 MTPA to ACL's capacity, bringing it to a total of 89 MTPA. The transaction, completed entirely in cash, aims to strengthen ACL's market position in the South and facilitate entry into Sri Lanka. During an analyst call following the acquisition, ACL's CFO Vinod Bahety indicated that even after this substantial investment, the company would still hold approximately Rs 10,000 crore in cash by year-end. Bahety explained, Given our strong cash position, the acquisition of Penna Cement represents a strategic deployment of our resources, yielding a return on capital employed of more than 15%. He further projected, The entire acquisition will be financed through our existing cash reserves. Even after this, I estimate that we will retain over Rs 10,000 crores in cash by the end of this year.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code