Ambuja Cements Goes Big: Rs 14,500 Crore Plan to Boost Capacity
Ambuja Cements plans a massive Rs 14,500 crore investment to add 30 MTPA capacity and reach 155 MTPA by FY30.
In a massive move to dominate the Indian construction landscape, Ambuja Cements Limited has announced a sweeping expansion programme. The company is set to invest approximately Rs 14,500 crore to add about 30 million tonnes per annum (MTPA) of cement capacity, aiming to solidify its footprint across the northern, western, and eastern regions of India.
This strategic push is designed to propel the company's total cement capacity from the current 113.5 MTPA to a staggering 155 MTPA by the financial year 2030. Currently, the company manages a robust network consisting of 24 integrated plants and 24 grinding units.
Mapping the Growth: Where the New Plants Will Rise
The expansion is not just about numbers but about strategic placement. Ambuja Cements is focusing on "clusters" to ensure production is closer to high-demand markets, thereby reducing the distance between the factory and the customer.
The West Cluster (15.5 MTPA Addition)
The western region will see the largest share of the new grinding capacity. The company plans to establish new facilities in:
- Gujarat: Mundra and Hazira.
- Maharashtra: Raigad, Kalyan, Dahanu, and Amravati.
The East Cluster (11.6 MTPA Addition)
To capture the growth in the east, the company is targeting several key states:
- Assam: Rangia and Hojai.
- Jharkhand: Godda.
- Bihar: Muzaffarpur.
The North Cluster (2.9 MTPA Addition)
In the north, the expansion will focus on the Dadri Line 2 facility located in Uttar Pradesh.
Strengthening the Backbone: Clinker Capacity
To support this massive increase in grinding capacity, Ambuja Cements is also boosting its upstream network by adding clinker capacity. The planned additions include:
- 4 MTPA at Umrangso in Assam.
- 4 MTPA at Maratha.
- 2.3 MTPA at Mundra.
The Strategy: Efficiency and Cost Reduction
Vinod Bahety, CEO of the Cement Business at Adani Group, emphasized that this phase of growth is centered on quality and balance. By aligning clinker production with grinding capacity and moving closer to high-growth markets, the company aims to build a more flexible and resilient network.
"Our next phase of expansion is focused on quality of growth and creating a more balanced manufacturing network... we are building greater flexibility into the network," said Bahety.
The ultimate goal is to enhance manufacturing efficiencies and slash logistics costs. The company has set an ambitious target to achieve a cost of Rs 4,000 per metric tonne (PMT) by FY28, leveraging shorter lead distances to stay competitive.
A Track Record of Rapid Scaling
This new investment is a continuation of a high-growth trajectory. The company has already seen significant progress:
- Recent Additions: In the first half of FY27, 4.6 MTPA was added via expansions in Dahej (Gujarat), Salai Banwa (Uttar Pradesh), and Kalamboli (Maharashtra).
- Upcoming Milestones: Another 5.6 MTPA is expected to be commissioned in the second half of FY27, including sites in Bathinda (Punjab), Jodhpur Penna (Rajasthan), and the Warisaliganj unit in Bihar.
- Short-term Goal: With these imminent additions, the total capacity is expected to hit 119 MTPA by March 2027.
Since its acquisition, Ambuja Cements has been on a roll, completing 11 capacity projects that added 16.3 MTPA of cement and 9.0 MTPA of clinker capacity as of September 30, 2026. As the 9th largest cement company globally and a pivotal part of the Adani Portfolio, Ambuja is positioning itself as a powerhouse in the Indian infrastructure boom.