Ambuja Cements to invest Rs 1,600 crore to set up cement grinding unit in Bihar

'The project will meet the growing infrastructure needs of Bihar, aligning with priorities outlined in the recent Union Budget,' Ambuja Cements said in a statement.

Adani Group-owned Ambuja Cements Limited, part of the diversified Adani Portfolio, on August 3 announced its first venture in Bihar, marking the largest investment in the state by a cement industry player. The Warisaliganj Cement grinding unit, a standalone facility with an overall capacity of 6 MTPA, will be established at an investment of nearly Rs. 1,600 crore.

"The project will be implemented in three phases with first phase of 2.4 MTPA at an investment of Rs. 1,100 crore is targeted to be commissioned by December 2025. Adequate provisioning of land for future expansion is in place which will be commissioned in due course at much lower capex," the company said in a statement.

"The plant is located in the Mosama village, Tehsil Warisaliganj, District Nawada, Bihar, the site is well-connected by road and rail, with Warisaliganj railway station 1 km away and SH-83 just 500 meters from the site," it added.

"The project will meet the growing infrastructure needs of Bihar, aligning with priorities outlined in the recent Union Budget," Ambuja Cements said in the statement.

On August 2, the shares of Ambuja Cements closed at Rs 650.85, down by 1.97%.

"This investment by the Adani Group is a testament to Bihar’s growth potential and our commitment to fostering sustainable development for the people of Bihar," Bihar Chief Minister Nitish Kumar said at the foundation stone-laying ceremony hosted by the Bihar Industrial Area Development Authority (BIADA).

Aimed at boosting infrastructure, contributing approximately Rs. 250 crore per year to the state's fiscal revenue and creating 250 direct jobs and 1000 indirect jobs for the state, the event was held in the gracious presence of many dignitaries including Bihar deputy CMs Samrat Choudhary and Vijay Kumar Sinha and industry minister Nitish Mishra.

Pranav Adani, Managing Director (Agro, Oil & Gas) and Director, Adani Enterprises Limited was also present. "This investment aligns with the state government's development programs and our growth plans. The cement industry is witnessing healthy volumes due to the government's infrastructure thrust, and Ambuja Cements is well positioned to support sustainable infrastructure development in the country," Pranav Adani said.

We are excited to announce a landmark ₹1,600 crore investment in Bihar to set up a 6 MTPA Cement Grinding Unit in Warisaliganj, creating significant job opportunities & contributing to the local economy. Adani Cement is well-positioned to support sustainable infrastructure… pic.twitter.com/CjctnByOZp

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— Karan Adani (@AdaniKaran) August 3, 2024

We look forward to collaborating with the state government, authorities, and local communities on this and future projects. State government's support in fast tracking and provisioning of all permits has made this landmark investment possible in short time.”

Bihar Industrial Area Development Authority (BIADA), the state agency, has already allotted 67.90 acres of land for this cement unit for which environmental clearance has been obtained for work on the site. The unit is likely to be operational by December 2025.

Adani Group recently announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, which will add 14 MTPA, taking its capacity to 93 MTPA. The group aims to achieve a 140 MTPA capacity by FY28 and is aggressively expanding organically through capacity expansion at the existing units and also going for acquisitions. Through Ambuja, it also controls ACC Ltd and acquired MyHome Industries and Sanghi Industries in 2023.

In addition to Warisaliganj, Ambuja Cements Limited has been allotted 26.60 acres of land by the BIADA for another cement unit in the industrial area of Mahbal, Motipur, Muzaffarpur. The environmental clearance for this project is under process, and work on this project is likely to start shortly.