Concrete

Ambuja Cementâ€™s Strategic plan on track to expand capacity to reach 50 MTPA

Published

5 years ago

March 5, 2021

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The 38 th Annual General Meeting of Ambuja Cements Ltd. was conducted on 9^th April 2021 virtually. Mr. Martin Kriegner, Non-Executive Director of the Company, chaired the meeting. The Chairman mentioned that Ambuja Cement is strongly progressing to become the ??ost Innovative,Sustainable and Competitive Building Solutions Company in India?? Ambuja Cement has a robust road map to become the best in the industry with strategic priorities structured under key levers of Growth, Competitiveness, Innovation & Digitalisation and Sustainability.

Growth: Ambuja Cement has ambitious growth plans to increase capacities and capture market growth in India. Its upcoming facility in Marwar Mundwa, Rajasthan will enhance clinker capacity by3 MTPA and help improve cement sales by 5 MTPA, contributing to long term strategy of capacity expansion. This Greenfield integrated plant, at a total investment of Rs. 2350 crores, will commence operations by Q3 2021. Ambuja is evaluating brownfield expansions in Bhatapara and Maratha plants.

It is also looking at significant debottlenecking opportunities across all plants. The growth plans will be executed in mid-term for Ambuja to reach 50 MTPA cement capacity. Competitiveness: Ambuja?? Operating EBITDA grew by 23% to Rs. 2,647 crores and Net Profit grew by 17% to Rs. 1,790 crores in 2020. Operating EBITDA and Net Profit margin for the year stood at 23.7% and 16% respectively, reporting a growth of 480 basis points and 260 basis points, over 2019. This strong performance was delivered through several cost management and efficiency initiatives. During the year, Ambuja leveraged synergies with ACC to drive scale and performance. This synergy under the Master Supply Agreement with ACC, led to more than 5% contribution Profit Before Tax in 2020. Ambuja Cement has a robust balance sheet with zero debt and AAA rating from Crisil.

Innovation and Digitalisation: During the year, Ambuja has launched its special product, ??mbuja Kawach?? which is a sustainable water-repellent cement and reduces carbon footprint by 33%, in comparison to other products. Its special product volume has recorded a strong double digit growth of 16% in 2020 and now comprises 11% of its total volumes.

Ambuja is strongly committed to enhance business efficiencies by leveraging Digitalization. The key focus of the year was on implementing digital tools in various parts of operations to enhance performance. The main initiative was the ??lants of Tomorrow??program which records and reports data from all assets on a real time basis helping improve operational efficiency. On logistics front, Artificial Intelligence powered supply chain management platform ??lue Yonder??was initiated and ??ransport Analytics Center??adopted from parent LafargeHolcim. Ambuja has also increased its digital engagement with customers and channel partners.

Sustainability: Ambuja Cement?? global parent LafargeHolcim has committed to becoming a ??et Zero??company and has set for itself the most ambitious climate targets in cement industry. Ambuja

has aligned to its parent?? ??et Zero??plan and sustainability strategy. Ambuja?? Sustainable Development Plan 2030 has a sharp focus on climate and energy, building a circular economy, conserving resources and nature, and driving meaningful change in the lives of communities. It aims to reduce CO2 to 463 kg CO₂/t cem. Ambuja targets to reuse 13.5 million tonnes of Waste and be 13 times water positive. It aims to save 77 litre/ tonne of cementious of water and positively impact the lives of 80 lakhs beneficiaries through its various CSR programs.

In 2020, Ambuja reduced its Specific net CO₂ per tonne of cementitious product to 531 kg. A uniqueinitiative in pipeline is the construction of WHRS in three locations by 2022 that would generate 54 MW to support power requirements in its plants. On circular economy, Ambuja co-processed around 4.5 lakhs tonnes of waste in its kilns including 83,000 tonnes of plastic waste. In addition, it consumed about 8 million tonnes of waste derived alternative raw materials such as fly ash, slag, synthetic gypsum in the manufacturing process. Ambuja is at the forefront in India in offering sustainable, long term waste management solutions through ??eocycle?? its waste management arm. In 2020, Ambuja has been 8 times water positive and reached out to 15.6 lakhs beneficiaries, through its CSR programs.

Across all its 20 locations, Ambuja reported zero fatality. It ranked 5 th in the Global Dow Jones Sustainability Index, a very significant global recognition.

Comments of Mr. Martin Kriegner, Chairman of the 38th AGM:

?? would like to congratulate all the employees of Ambuja for their resilience and commitment to deliver a remarkable performance in 2020. On behalf of the Board of Directors, I express my sincere appreciation for the efforts and hard work from employees at all levels and wish them the very best for year 2021. I take this opportunity to thank all our shareholders for their trust.??/p>

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

Published

1 week ago

July 20, 2026

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

Published

1 week ago

July 17, 2026

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

Published

2 weeks ago

July 16, 2026

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.

The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.

Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.

The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.

Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.

Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.

Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.

The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.