Ambuja Cements to add 20 mtpa capacity at Rs 10k cr
Cement

Ambuja Cements to add 20 mtpa capacity at Rs 10k cr

Cement major Ambuja Cement's 20 million tonne per annum (mtpa) expansion plan to its already existing 30 mtpa capacity will cost around Rs 10,000 crore, according to analysts.

Ambuja Cement's upcoming plant in Marwar Mundwa in Rajasthan will increase clinker capacity by 3 mtpa and boost cement sales by 5 mtpa, contributing to the long term strategy of capacity expansion. This Rs 2,350 crore investment greenfield integrated unit, will commence operations by the July-September quarter.

The cement manufacturer is evaluating brownfield expansion plans in Maratha (Maharashtra) and Bhatapara (Chhattisgarh) plants. It also plans significant debottlenecking opportunities across all plants. The growth plans will be executed in the mid-term for Ambuja to reach a 50 mtpa cement capacity.

The company has reported a 71% surge in its consolidated net profit at Rs 947.21 crore in the January-March quarter, as against a profit of Rs 554 crore last year, contradicting analyst estimates on the back of strong volume growth and lower operating costs.

According to a report by Goldman Sachs, the company's execution on costs continues to beat expectations, with a combination of fuel-mix change, optimising fixed costs, distribution, and energy efficiency measures contributing to the lower costs. The report said that the expected capacity addition at Marwar Mundwa by Q3 CY21 will not only add 3 mtpa of clinker and 1 mtpa of grinding for the company but also provide clinker for some starved grinding capacity and hence drive better than historical volume growth for the company.

A report by Morgan Stanley said that better-than-expected demand has contributed to faster volume growth. Lower-than-expected costs, helped by Ambuja's ongoing cost-saving initiatives, and higher-than-expected price rise resulted in better EBITDA margins, the report said.

The company plans to complete the expansion in the medium term of around three to five years.

Image Source


Also read: Ambuja plans to ramp up capacity to 50 mtpa in the near term

Also read: Ambuja Cement shows good volume growth

Cement major Ambuja Cement's 20 million tonne per annum (mtpa) expansion plan to its already existing 30 mtpa capacity will cost around Rs 10,000 crore, according to analysts. Ambuja Cement's upcoming plant in Marwar Mundwa in Rajasthan will increase clinker capacity by 3 mtpa and boost cement sales by 5 mtpa, contributing to the long term strategy of capacity expansion. This Rs 2,350 crore investment greenfield integrated unit, will commence operations by the July-September quarter. The cement manufacturer is evaluating brownfield expansion plans in Maratha (Maharashtra) and Bhatapara (Chhattisgarh) plants. It also plans significant debottlenecking opportunities across all plants. The growth plans will be executed in the mid-term for Ambuja to reach a 50 mtpa cement capacity. The company has reported a 71% surge in its consolidated net profit at Rs 947.21 crore in the January-March quarter, as against a profit of Rs 554 crore last year, contradicting analyst estimates on the back of strong volume growth and lower operating costs. According to a report by Goldman Sachs, the company's execution on costs continues to beat expectations, with a combination of fuel-mix change, optimising fixed costs, distribution, and energy efficiency measures contributing to the lower costs. The report said that the expected capacity addition at Marwar Mundwa by Q3 CY21 will not only add 3 mtpa of clinker and 1 mtpa of grinding for the company but also provide clinker for some starved grinding capacity and hence drive better than historical volume growth for the company. A report by Morgan Stanley said that better-than-expected demand has contributed to faster volume growth. Lower-than-expected costs, helped by Ambuja's ongoing cost-saving initiatives, and higher-than-expected price rise resulted in better EBITDA margins, the report said. The company plans to complete the expansion in the medium term of around three to five years. Image Source Also read: Ambuja plans to ramp up capacity to 50 mtpa in the near term Also read: Ambuja Cement shows good volume growth

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?