Ambuja Cements, part of the Adani Group, has won 24 new limestone mines, adding 587 million tonnes to its resources. This is on top of the 1 billion tonnes acquired from Sanghi Industries last November for Rs 5,185 crore.
Winning these bids is crucial for Ambuja’s self-sufficiency, as coal mines in Dahegaon-Gowari and Gare Palma already supply 40% of its coal needs.
The Adani Group aims to expand its capacity to 140 million tonnes per annum (MTPA) by 2028. Recently, they acquired Penna Cement for Rs 10,422 crore, adding 14 MTPA and taking their total capacity to 89 MTPA.
ACL CFO Vinod Bahety said the Penna Cement acquisition will help Ambuja increase its market share in the South and expand into Sri Lanka. By the end of the year, Ambuja expects to have Rs 10,000 crore in cash. Ambuja is also investing over Rs 10,000 crore in green power projects to power 60% of its capacity with solar, wind, and waste heat recovery by FY 2027-28.
Additionally, Ambuja plans to expand its master supply agreement with ACC Ltd and Sanghi Industries Ltd to increase revenue and profitability. This agreement has helped achieve synergies and operational efficiency.
The Indian cement industry, the second-largest globally, reached 397 MTPA in FY 2022-23. It is expected to grow by 9-10% in FY 2023-24, reaching 425-430 MTPA, and 8-9% in FY 2024-25. For the financial year ending March 31, 2024, ACL’s consolidated revenue, including ACC, was Rs 33,159.64 crore.