Ambuja Cements targets 104 MTPA capacity by March, 140 MTPA by FY28 through internal accruals

The current capacity stands at 97 MTPA, with 22 MTPA, or 33% having been added in the last 24 months since the acquisition by the Adani Group.

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26 Aug, 2025 12:21

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Ambuja Cements, now an Adani Group company, said it will achieve 104 million tonnes per annum (MTPA) cement making capacity by the end of this fiscal, with several brownfield projects at advanced stage of completion.

The current capacity stands at 97 MTPA, with 22 MTPA or 33% having been added in the last 24 months since the acquisition by the Adani Group. Sharing the expansion target in its December quarter earnings report card, Ambuja Cements said as much as 118 MTPA capacity will be created by FY26, and the company is on track to achieve the targeted capacity of 140 MTPA by FY28.

Ambuja's 89 MTPA cement capacity (without factoring in Orient Cements' capacity yet) will be ramped up to 140 MTPA through internal accruals and operating cash flows, the company has said. The roadmap to capex includes a stated target of 118 MTPA capacity by FY26 and 140 MTPA by FY28, said Ambuja Cements. The company anticipates that the acquisition of Orient Cement should be finalized in the fourth quarter of FY25, while the planned merger between Penna Cements and Sanghi Industries, two recently acquired units, is currently underway, in order to streamline its cement business.

The cement space has seen major consolidation in recent years with the Adani Group acquiring Penna Cement, and Ambuja Cements singing a binding agreement with Orient Cements to buy stake. Adani Group has plan to implement its accelerated capex program through internal accruals, and keep the business debt free. A significant part of the capex programme for capacity expansion is through brownfield projects, said Ambuja.

Ambuja had acquired Penna Cement in June 2024 for $1.25 billion, and had previously obtained a majority stake in Sanghi Industries. The Adani family had also infused additional investment into Ambuja Cements last year to raise its stake to 70.3%.

Ambuja Cements also said the demand for cement from commercial sector has sharply risen, with Make in India and PLI schemes attracting investments worth $12.8 billion in a year. This demand is backed by addition of Global Capability Centers, industrial parks and growth in the office market. India is the second largest producer of cement with 9% share in global capacity, and in terms of per capita cement consumption, India stands at half of the average, and 1/6th of that of China.