Ambuja’s expansion plans: The Gautam Adani-led Adani Group, the parent company of Ambuja Cements and ACC Ltd, aims to secure approximately one-fifth of India's cement market by the fiscal year 2028.

According to an investor presentation shared by Ambuja Cements, Adani Cement intends to execute its accelerated capital expenditure program using internal resources, maintaining a debt-free status. The company projects a growth trajectory, targeting a 16 per cent expansion rate to achieve a capacity of 140 million tonnes per annum by FY2028.

Currently holding a 14 per cent market share, Adani Cement aims to elevate this figure to 20 per cent by FY28, positioning itself as the second-largest player in the sector, trailing behind UltraTech Cements of the Aditya Birla Group.

Ambuja, along with its subsidiary ACC Ltd, collectively hold the capacity to produce 77.4 million tonnes of cement annually across the nation, including 18 integrated manufacturing plants and 18 grinding units. Recent acquisitions, such as Sanghi Industries Ltd., contribute to its growth strategy. The Group has strategic advantages for capacity expansion, including land holdings and advanced acquisition stages, with an estimated limestone reserve of 8,000 million metric tonnes available at minimal premiums.

Moreover, Adani Cement secures 40 per cent of its Fly Ash requirements through long-term arrangements, set to increase to over 50 per cent by 2028. Leveraging better enterprise risk management and synergies within the Group, Ambuja underlines accelerated growth and cost leadership as its key differentiators. 

The company remains debt-free, boasting a net worth of Rs 43,000 crore (approximately $5.2 billion), with cash and equivalents amounting to Rs 8,591 crore ($1.04 billion) as of December 2023.

The Adani Group forecasts a 7 to 8 per cent Compound Annual Growth Rate (CAGR) for the Indian cement industry, citing opportunities in the Building Materials sector. India, currently the world's second-largest cement producer with a capacity of 550 million tonnes, is projected to witness a demand growth of 8-9 per cent over the next five years, surpassing the rate of capacity addition and leading to improved capacity utilization.

In September 2022, the Adani Group acquired a controlling stake in Ambuja Cement from Swiss firm Holcim for $6.4 billion (approximately Rs 51,000 crore) in cash proceeds.

(With PTI inputs)