Ambuja Cements Targets 155 MTPA by FY2030 Through New Projects
Ambuja Cements is preparing to significantly scale up its cement operations, with a plan to increase production capacity by 30 million tonnes per year (MTPA) in major markets. The company announced on Monday that the expansion will be delivered through new greenfield and brownfield projects, backed by a proposed growth capital expenditure of about Rs 14,500 crore.
Part of the Adani portfolio and one of India's major building materials companies, Ambuja Cements said the expansion will extend its manufacturing network into the fast-growing markets of eastern, western and northern India. At present, the company operates 24 integrated plants and 24 grinding units nationwide, with a cement production capacity of 113.5 MTPA.
Vinod Bahety, chief executive of the cement business of the Adani Group, said the next stage of expansion is centred on improving the quality of growth and building a more balanced manufacturing network. He said stronger coordination between clinker and grinding capacity, along with expansion close to high-growth markets, is adding flexibility to the company's network.
Following the proposed expansion, the company's cement production capacity is projected to reach 155 MTPA by fiscal year 2030.
Bahety said the expansion aims to strengthen market access, logistics and cost efficiency at the same time. "Each increase in capacity should reinforce the competitiveness of the whole business," he said. He added that the company has a robust supply chain ecosystem in these markets, as well as strong brand equity and a solid share of premium cement. The expansion, he said, will be in line with value-based strategic growth.
The expansion plan includes new grinding capacity of 15.5 MTPA in the western cluster, 11.6 MTPA in the eastern cluster and 2.9 MTPA in the northern cluster.
The programme also covers clinker capacity. New clinker capacity of 4 MTPA will be established at Umrangso in Assam in the eastern cluster, along with 4 MTPA at Marathon in the western cluster and 2.3 MTPA at Mundra. These additions will support the clinker supply needed by the expanded grinding network.
Bahety said these capacities will help increase market share and also reduce manufacturing costs through better efficiency. Proximity to markets will shorten transport distances and lower logistics costs. Taken together, he said, the steps will create a path to a cost of Rs 4,000 per metric tonne (PMT) by fiscal year 2028.
During the first half of fiscal year 2027, the company added 4.6 MTPA of capacity. This included a 1.2 MTPA brownfield expansion at Dahej in Gujarat, a new 2.4 MTPA grinding unit at Salai Banwa in Uttar Pradesh and a 1.0 MTPA brownfield expansion at Kalamboli in Maharashtra. Following these additions, the company's total cement capacity has increased to 113.5 MTPA.
More capacity additions are expected in the near future. The Bathinda grinding unit in Punjab (North cluster) has added 1.2 MTPA, and the Jodhpur Penna integrated unit in Rajasthan has added 2 MTPA. These two projects together add 3.2 MTPA, which has now stabilised, and output is expected to rise further in the second half of fiscal year 2027.
Additionally, the 2.4 MTPA grinding unit at Warisaliganj in Bihar will be commissioned in the second half of fiscal year 2027. The company expects its total production capacity to reach 119 MTPA by the end of March 2027.
Since the acquisition, Ambuja Cements has completed 11 capacity expansion projects as of September 30, 2026. These projects have added 16.3 MTPA of cement production capacity and 9.0 MTPA of clinker production capacity.