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Ambuja rivals UltraTech in limestone reserves via acquisitions

Ambuja Cements reported limestone reserves of eight billion tonnes

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Ambuja Cements, under the Adani Group, is making strategic acquisitions to compete with India’s largest cement manufacturer, UltraTech Cement, and has significantly increased its limestone reserves over the past few years.

As of June, Ambuja Cements reported limestone reserves of eight billion tonnes, while UltraTech disclosed reserves of ten billion tonnes. Despite UltraTech’s cautious approach to limestone auction bids in the last year, Ambuja Cements has bolstered its reserves by participating in various state auctions, accumulating nearly one billion tonnes.

With the Adani Group as new promoters, Ambuja Cements has aggressively built its limestone reserves, similar to UltraTech’s approach. In FY24, Ambuja Cements secured 587 million tonnes of limestone reserves through auctions and added another 275 million tonnes in the first quarter of FY25. The eight billion tonnes figure does not include the 83 million tonnes won in a recent auction from July to September.

Recent acquisitions have also enhanced Ambuja Cements’ limestone holdings. The 2023 acquisition of Sanghi Industries added one billion tonnes to its reserves, and a recent deal to acquire Orient Cement has introduced additional limestone mines in Rajasthan.

Limestone is a crucial raw material in cement production, necessitating that cement units are located near limestone sources. With the top four cement manufacturers planning significant capacity expansions, access to limestone reserves is vital.

Ravleen Sethi, associate director at CareEdge, noted, “Cement companies are pursuing two strategies on limestone: securing supply for planned expansions and preparing for lease expiries and increased costs under the MMDR Act.” Many leases are set to expire from 2030 onwards, which could lead to cost increases and access challenges.

Sethi further explained that lease expirations and new bidding could heighten competition, potentially forcing companies to seek alternative deposits at higher auction premiums and freight costs. In a worst-case scenario, a plant might need to shut down temporarily or permanently if it loses its limestone lease to a new competitor.

In FY24, Ambuja Cements emerged as the top bidder in limestone auctions, with Nuvoco Vistas Corp and JK Cement also actively participating in FY25.

Concrete

Star Cement launches ‘Star Smart Building Solutions’

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Star Cement has launched ‘Star Smart Building Solutions,’ a new initiative aimed at promoting sustainable construction practices, as per a recent news report. This venture introduces a range of eco-friendly products, including tile adhesives, tile cleaners and grouts, designed to enhance durability and reduce environmental impact. The company plans to expand this portfolio with additional value-added products in the near future. By focusing on sustainable materials and innovative building solutions, Star Cement aims to contribute to environmentally responsible construction and meet the evolving needs of modern infrastructure development.

Image source:https://www.starcement.co.in/

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Concrete

Nuvoco Vistas reports record quarterly EBITDA

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Nuvoco Vistas reported its highest-ever quarterly consolidated EBITDA of Rs.556 crore in Q4 FY25, with annual EBITDA at Rs.1,391 crore. Cement sales reached 19.4 MMT in FY25, with Q4 contributing 5.7 MMT. Revenue rose 4 per cent YoY to Rs.3,042 crore in Q4. Net debt reduced by Rs.390 crore to Rs.3,640 crore. The company received NCLT approval for acquiring Vadraj Cement, targeting 31 MMTPA capacity by FY27. Key marketing initiatives, expanding RMX and MBM businesses, and a focus on sustainability (457 kg CO2/tonne) drove performance. Nuvoco remains focused on premiumisation, operational efficiency, and market expansion.

Image source:nuvoco.com

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Concrete

UltraTech Cement increases capacity by 1.4Mt/yr

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UltraTech Cement has expanded its production capacity by 1.4 million tonnes per annum (Mt/yr) through a combination of debottlenecking efforts and operational efficiency upgrades across several of its plants. The enhancements include an addition of 0.6Mt/yr in grinding capacity at the Nagpur facility in Maharashtra and a combined 0.8Mt/yr at the Panipat and Jhajjar units in Haryana. With these upgrades, the company’s total domestic grey cement capacity has risen to 184.8Mt/yr, while its global capacity now stands at 190.2Mt/yr.

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