- New expansion programme to add nearly 30 MTPA of cement capacity across East, West and North India
- Assam, Bihar, Jharkhand, Gujarat, Maharashtra and Uttar Pradesh to anchor the next phase of growth
- Current capacity of 113.5 MTPA to rise to 119 MTPA by March 2027, with a longer-term target of 155 MTPA
- Integrated clinker and grinding capacity expansion aims to improve market reach, logistics efficiency and manufacturing competitiveness
- CEO Vinod Bahety sets sights on a ₹4,000-per-tonne cost target by FY28
NE BUSINESS BUREAU
AHMEDABAD, NOV 2
Ambuja Cements is preparing for a major leap in scale, geographical reach and manufacturing efficiency, unveiling a nearly 30 MTPA capacity expansion backed by a growth capital expenditure programme of around ₹14,500 crore. The proposed investments across six states are designed not only to strengthen its presence in high-growth markets but also to bring production closer to consumption centres, streamline logistics and improve the competitiveness of its pan-India operations.
Part of the Adani Portfolio, Ambuja Cements currently has an installed cement capacity of 113.5 MTPA, supported by a nationwide network of 24 integrated plants and 24 grinding units. The proposed expansion, together with debottlenecking initiatives, is expected to take its total capacity to 155 MTPA by FY30.
The planned additions are spread across the East, West and North clusters, with the West accounting for approximately 15.5 MTPA, the East for 11.6 MTPA and the North for 2.9 MTPA of additional grinding capacity.
Six states in the expansion map
In the East, the company plans to add capacity at Rangia (2.9 MTPA) and Hojai (2.9 MTPA) in Assam, Godda (2.9 MTPA) in Jharkhand and Muzaffarpur (2.9 MTPA) in Bihar.
The West cluster will see additions at Mundra (2.9 MTPA) and Hazira (2.9 MTPA) in Gujarat, and Raigad (2.9 MTPA), Kalyan (2.9 MTPA), Dahanu (0.7 MTPA) and Amravati (2.9 MTPA) in Maharashtra. In the North, Dadri Line 2 in Uttar Pradesh will add 2.9 MTPA.
The programme also envisages new clinker capacity to strengthen the upstream supply chain. This includes 4 MTPA at Umrangso in Assam, 4 MTPA at Maratha and 2.3 MTPA at Mundra in the West.
Growth anchored in market proximity and cost efficiency
Vinod Bahety, CEO – Cement Business, Adani Group, said the next phase of expansion was focused on quality of growth and building a more balanced manufacturing network.
“Our next phase of expansion is focused on quality of growth and creating a more balanced manufacturing network. By strengthening the link between clinker and grinding capacity and expanding closer to the high growth potential key markets, we are building greater flexibility into the network. As we scale, our focus is on combining market reach with logistics and cost efficiencies so that every capacity addition strengthens the competitiveness of the overall business,” he said.
Bahety also highlighted the company’s supply-chain ecosystem, brand equity and growing share of premium cement in these markets, adding that the expanded footprint would complement its value-based growth strategy.
Explaining the cost rationale, he said the expansion and additional debottlenecking initiatives would support the company’s ambition to achieve a manufacturing cost of ₹4,000 per tonne by FY28.
The strategy is aimed at increasing market presence while improving manufacturing efficiencies. Locating grinding capacity closer to demand centres is expected to reduce lead distances and logistics costs, while a stronger clinker network will support a more integrated and flexible supply chain.
Near-term additions to lift capacity to 119 MTPA
The next phase builds on an expansion programme already delivering results. During H1 FY27, Ambuja added 4.6 MTPA through a 1.2 MTPA brownfield expansion at Dahej in Gujarat, the 2.4 MTPA Salai Banwa Grinding Unit in Uttar Pradesh and a 1.0 MTPA brownfield expansion at Kalamboli in Maharashtra. These additions took its overall cement capacity to 113.5 MTPA.
A further 3.2 MTPA is expected to be stabilised and ramped up during H2 FY27 through the Bathinda Grinding Unit (1.2 MTPA) in Punjab and Jodhpur Penna Integrated Unit (2 MTPA) in Rajasthan. The 2.4 MTPA Warisaliganj Grinding Unit in Bihar is also scheduled for commissioning during the second half of FY27.
Together, these developments are expected to take the company’s cement capacity to 119 MTPA by the end of March 2027.
Building scale through an expanding industrial network
Since its acquisition, Ambuja has completed 11 capacity projects, adding 16.3 MTPA of cement capacity and 9.0 MTPA of clinker capacity up to September 30, 2026.
The proposed 30 MTPA programme marks the next stage of this expansion, strengthening the company’s manufacturing footprint and its ability to serve markets across the country. The company said its network comprises 25 Integrated Units, 37 Grinding Units and three Clinker Units.
With a combination of greenfield projects, brownfield expansions and debottlenecking, Ambuja is seeking to align capacity growth with demand, operational flexibility and cost discipline as it pursues its 155 MTPA ambition by FY30.