New Delhi: Ambuja Cements, the second-largest cement manufacturer in the country and part of the Adani Group, has crossed a key operational milestone by achieving over 100 million tonnes per annum (MTPA) cement capacity in FY25. The company has set a target to scale this to 118 MTPA by FY26 and 140 MTPA by FY28, driven largely by brownfield expansion projects.
The company accounts for nearly 30 per cent of the cement used in India’s housing and infrastructure development, according to its FY25 annual report. This makes Ambuja a critical supplier across the country’s construction and real estate landscape, with plans to build on its scale through a mix of organic and inorganic initiatives.
“Ambuja Cements, now a core part of the Adani Group’s cement business, contributes to nearly 30 per cent of India’s homes and infrastructure. This is a story of resilience fuelled by a growth mindset – a journey that marries legacy with innovation and is inspired by a clear and purposeful vision,” said Vinod Bahety, CEO, Ambuja Cements.
From a strategic standpoint, the company has advanced its capacity through a combination of timely acquisitions and greenfield and brownfield projects. Since its acquisition by the Adani Group from Switzerland-based Holcim for USD 6.4 billion in September 2022, Ambuja has emerged as the ninth-largest cement producer globally.
In the 30 months since joining the Adani Group, Ambuja has seen nearly 50 per cent growth in consolidated capacity, supported by its acquisition of Penna Cement, Sanghi Industries, and Orient Cement. It also owns a majority 51 per cent stake in ACC Ltd.
“A key catalyst behind this success has been our series of efficient and timely acquisitions, each completed with precision and synergy. Alongside inorganic growth, our organic expansion projects continue to gain strong momentum across the country, bringing us closer to our ambitious long-term target of reaching 140 MTPA by 2028,” Bahety added.
The expansion blueprint includes a pipeline of clinker and grinding units planned for completion in FY26 at Bhatapara, Sankrail, Sindri, Salai-Banwa, Dahej, Marwar, Kalamboli, Krishnapatnam, Bathinda, Jodhpur, Maratha, and Warisaliganj. The company is also progressing on nine additional grinding unit projects beyond FY26.
Operationally, the company posted a sales volume of 65.2 million tonnes in FY25, with total revenue of ₹35,045 crore and a profit after tax of ₹5,158 crore. Ambuja Cements maintains a debt-free status, which, according to the CEO, is a result of its prudent capital allocation.
“Our strong balance sheet, marked by a debt-free status, underscores our prudent capital allocation and financial discipline,” Bahety said.
As part of its efficiency push, Ambuja is working on reducing logistics costs through multiple interventions. These include increasing the use of seaborne freight, optimising depot locations, and leveraging GPWIS and BCFC rake networks.
“By shifting a significant portion of our freight to seaborne transport, optimising depot locations, and leveraging GPWIS and BCFC rakes, we have achieved a 6 per cent reduction in logistics costs to date,” Bahety stated. The company has set a target to achieve a 15 per cent reduction in logistics costs by FY30.
Green energy transition also features prominently in Ambuja’s medium-term strategy. It aims to power 60 per cent of its future cement capacity and 83 per cent of its clinker operations using green energy sources.
Looking at broader industry trends, Ambuja expects India’s total installed cement capacity to reach 850 MTPA by 2030 and 1,350 MTPA by 2050. This projection underlines the anticipated demand growth in infrastructure and housing over the next two decades.
The largest cement player in India, UltraTech Cement, currently holds a capacity of 183.06 MTPA and is also expanding through acquisitions. Together, the top two companies are leading the sector’s scale-up to meet long-term domestic and export-oriented demand.
