Concrete
Ambuja delivers robust performance in a challenging quarter
Published
4 years agoon
By
admin
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EBITDA growth of 61% for the quarter
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78% rise in Operating EBIT with EBIT margin expansion of 310 basis points backed by strong growth in volumes and efficiency gains
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The greenfield integrated plant at Marwar Mundwa to commence operations in the third quarter of 2021
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Embarking on the next step of our growth journey with cement capacity expansion of 1.5 million tonne at Ropar (Punjab)
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Health and Safety remains key priority; focus on vaccination drives
Neeraj Akhoury, CEO India, Holcim and Managing Director and CEO Ambuja Cements Limited said:
??mbuja registered a strong performance in the second Quarter of 2021 with 78% growth in operating EBIT and 310 basis points expansion in the EBIT margin. This performance resulted from strong growth in sales of premium products and successful execution of efficiency improvement programs which has partly been impacted by rising energy and raw material costs. Synergies under the master supply agreement have significantly benefited both Ambuja and ACC as we leverage our national footprint.
Along with delivering robust financial performance, we remain committed to be best in class in sustainability goals. Our waste heat recovery systems projects are progressing as per plan and along with reduction in emissions will also reduce our dependence on thermal energy. With support of our parent, Holcim, we are focused on conserving natural resources by utilising alternative fuels and raw materials. We have used about 46 lakh tonnes of waste-derived resources in the first six months of 2021. Our increased focus on sustainability, digitisation and innovation is enabling us to reach closer to our global goal of net zero emissions.??/p>
Covid-19 update
The second wave of Covid-19 in the country was managed proactively by the company. We continue to ensure strict adherence to government guidelines across all our plants and offices. Our 24×7 Covid-19 crisis control room support is enhanced with a third party medical services provider for close end to end support to our people across the country. We have also facilitated vaccination drives wherein more than 97% of our employees, dependents and third party workers have been covered. Our plants are operating under strict Covid-19 protocols in line with the current risk which is being dynamically assessed on a daily basis.
Financial performance for the quarter ended 30 June 2021
Net Sales during the quarter stood at Rs 3,342 cr compared to Rs 2,145 cr in the corresponding quarter of the previous year, resulting in a growth of 56%. Premium products volume grew at 69% compared to the same period last year.
Total operating cost per ton sees a marginal decline, despite continuous headwinds faced on account of rising input costs. The operational efficiency programs in the plants along with logistics efficiencies partly mitigated the impact. EBITDA during the quarter at Rs 960 cr showed a growth of 61% and Operating EBIT at Rs 829 cr showed a robust growth of 78%.
Ambuja helped 8,347 customers to save about 260 lakh litres of water at construction sites by providing value added services such as modular curing, concrete mix proportions, and rain water harvesting systems.
New Expansion Project
In line with our expansion plans, the board has approved 1.5 million tonne cement capacity expansion at the existing grinding unit at Ropar in Punjab.
Consolidated unaudited financial results for the quarter and half year ended 30 June 2021
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EBITDA higher by 63%
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Margin expansion for the quarter by 180 basis points
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Growth in Operating EBIT is 87%
Performance of ACC Limited, a Material Subsidiary
Net Sales during the quarter increased to Rs 3,810 cr and recorded a growth of 51% vs previous year. EBITDA during the quarter up by 65% vs previous year at Rs 869 cr, with an EBITDA margin expansion of 200 basis points. The company also witnessed strong delivery on cost efficiency actions under project ??arvat??across cost levers combined with healthy working capital despite volatility due to the second wave of COVID 19.
Outlook
GDP for fiscal 2021-2022 is projected to grow at the rate of 9.5% and is expected to remain strong going forward. The measures announced by the government including higher spending for infrastructure development will support revival of economic activity in general and lead to higher cement demand. With the operational efficiency programs and expansion projects, the company feels confident to capture the future growth.
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Adani’s Strategic Emergence in India’s Cement Landscape
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September 16, 2025By
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Milind Khangan, Marketing Head, Vertex Market Research, sheds light on Adani’s rapid cement consolidation under its ‘One Business, One Company’ strategy while positioning it to rival UltraTech, and thus, shaping a potential duopoly in India’s booming cement market.
India is the second-largest cement-producing country in the world, following China. This expansion is being driven by tremendous public investment in the housing and infrastructure sectors. The industry is accelerating, with a boost from schemes such as PM Gati Shakti, Bharatmala, and the Vande Bharat corridors. An upsurge in affordable housing under the Pradhan Mantri Awas Yojana (PMAY) further supports this expansion. In May 2025, local cement production increased about 9 per cent from last year to about 40 million metric tonnes for the month. The combined cement capacity in India was recorded at 670 million metric tonnes in the 2025 fiscal year, according to the Cement Manufacturers’ Association (CMA). For the financial year 2026, this is set to grow by another 9 per cent.
In spite of the growing demand, the Indian cement industry is highly competitive. UltraTech Cement (Aditya Birla Group) is still the market leader with domestic installed capacity of more than 186 MTPA as on 2025. It is targeted to achieve 200 MTPA. Adani Cement recently became a major player and is now India’s second-largest cement company. It did this through aggressive consolidation, operational synergies, and scale efficiencies. Indian players in the cement industry are increasingly valuing operational efficiency and sustainability. Some of the strategies with high impact are alternative fuels and materials (AFR) adoption, green cement expansion, and digital technology investments to offset changing regulatory pressure and increasing energy prices.
Building Adani Cement brand
Vertex Market Research explains that the Adani Group is executing a comprehensive reorganisation and consolidation of its cement business under the ‘One Business, One Company’ strategy. The plan is to integrate its diversified holdings into one consolidated corporate entity named Adani Cement. The focus is on operating integration, governance streamlining, and cost reduction in its expanding cement business.
Integration roadmap and key milestones:
- September 2022: The consolidation process started with the $6.4 billion buyout of Holcim’s majority stakes in Ambuja Cements and ACC, with Ambuja becoming the focal point of the consolidation.
- December 2023: Bought Sanghi Industries to strengthen the firm’s presence in western India.
- August 2024: Added Penna Cement to the portfolio, improving penetration of the southern market of India.
- April 2025: Further holding addition in Orient Cement to 46.66 per cent by purchasing the same from CK Birla Group, becoming the promoter with control.
- Ambuja Cements amalgamated with Adani Cement: This was sanctioned by the NCLT on 18th July 2025 with effect from April 1, 2024. This amalgamation brings in limestone reserves and fresh assets into Ambuja.
- Subject to Sanghi and Penna merger with Ambuja: Board approvals in December 2024 with the aim to finish between September to December 2025.
- Ambuja-ACC future integration: The latter is being contemplated as the final step towards consolidation.
- Orient Cement: It would serve as a principal manufacturing facility following the merger.
Scale, capacity expansion and market position
In financial year-2025, Adani Cement, including Ambuja, surpassed 100 MTPA. This makes it one of the world’s top ten cement companies. Along with ACC’s operations, it is now firmly placed as India’s second-largest cement company. In FY25, the Adani group’s sales volume per annum clocked 65 million metric tonnes. Adani Group claims that it now supplies close to 30 per cent of the cement consumed in India’s homes and infrastructure as of June 2025.
The organisation is pursuing aggressive brownfield expansion:
- By FY 2026: Reach 118 MTPA
- By FY 2028: Target 140 MTPA
These goals will be driven by commissioning new clinker and grinding units at key sites, with civil and mechanical works underway.
As of 2024, Adani Cement had its market share pegged at around 14 to 15 per cent, with an ambition to scale this up to 20 per cent by FY?2028, emerging as a potent competitor to UltraTech’s 192?MTPA capacity (186 domestic and overseas).
Strategic advantages and competitive benefits
The consolidation simplifies decision-making by reducing legal entities, centralising oversight, and removing redundant functions. This drives compliance efficiency and transparent reporting. Using procurement power for raw materials and energy lowers costs per ton. Integrated logistics with Adani Ports and freight infrastructure has resulted in an estimated 6 per cent savings in logistics. The group aims for additional savings of INR 500 to 550 per tonne by FY 2028 by integrating green energy, using alternative fuel resources, and improving sourcing methods.
Market coverage and brand consistency
Brand integration under one strategy will provide uniform product quality and easier distribution networks. Integration with Orient Cement’s dealer base, 60 per cent of which already distributes Ambuja/ACC products, enhances outreach and responsiveness.
By having captive limestone reserves at Lakhpat (approximately 275 million tonnes) and proposed new manufacturing facilities in Raigad, Maharashtra, Adani Cement derives cost advantage, raw material security, and long-term operational robustness.
Strategic implications and risks
Consolidation at Adani Cement makes it not just a capacity leader but also an operationally agile competitor with the ability to reap digital and sustainability benefits. Its vertically integrated platform enables cost leadership, market responsiveness, and scalability.
Challenges potentially include:
- Integration challenges across systems, corporate cultures, and plant operations
- Regulatory sanctions for pending mergers and new capacity additions
- Environmental clearances in environmentally sensitive areas and debt management with input price volatility
When materialised, this revolution would create a formidable Adani–UltraTech duopoly, redefining Indian cement on the basis of scale, innovation, and sustainability. India’s leading four cement players such as Adani (ACC and Ambuja), Dalmia Cement, Shree Cement, and UltraTech are expected to dominate the cement market.
Conclusion
Adani’s aggressive consolidation under the ‘One Business, One Company’ strategy signals a decisive shift in the Indian cement industry, positioning the group as a formidable challenger to UltraTech and setting the stage for a potential duopoly that could dominate the sector for years to come. By unifying operations, leveraging economies of scale, and securing vertical integration—from raw material reserves to distribution networks—Adani Cement is building both capacity and resilience, with clear advantages in cost efficiency, market reach, and sustainability. While integration complexities, regulatory hurdles, and environmental approvals remain key challenges, the scale and strategic alignment of this consolidation promise to redefine competition, pricing dynamics, and operational benchmarks in one of the world’s fastest-growing cement markets.
About the author:
Milind Khangan is the Marketing Head at Vertex Market Research and comes with over five years of experience in market research, lead generation and team management.
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Series F – Parallel Shaft Mounted Geared Motors: Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes, and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.
Series K – Right Angle Helical Bevel Geared Motors: For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining, and material handling. Its flexibility in mounting and broad motor options offer engineers’ freedom in design and reliability in execution.
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