Ambuja Cements Limited targets 155 MTPA with Rs 14,500 crore

Ambuja Cements plans to invest around Rs 14,500 crore in an expansion programme designed to add about 30 million tonnes per annum (MTPA) of cement capacity and reach 155 MTPA by FY30. The company reported 113.5 MTPA of capacity after adding 4.6 MTPA during H1 FY27.

How much capacity is Ambuja Cements adding by FY30?

Ambuja Cements is planning about 30 MTPA of new cement capacity, alongside debottlenecking initiatives, to reach 155 MTPA by FY30. The programme spans greenfield and brownfield projects in the East, West and North clusters, building on 113.5 MTPA of capacity across 24 integrated plants and 24 grinding units in H1 FY27.

The disclosed expansion is concentrated in the West cluster, which accounts for 15.5 MTPA of new grinding capacity, compared with 11.6 MTPA in the East and 2.9 MTPA in the North. Ambuja Cements also plans 10.3 MTPA of clinker capacity, comprising 4 MTPA at Umrangso in Assam, 4 MTPA at Maratha and 2.3 MTPA at Mundra. Clinker is an intermediate material ground to make cement, and these additions are intended to support the larger grinding network.

Where will Ambuja Cements build the new capacity?

Ambuja Cements will add grinding capacity in Assam, Bihar, Jharkhand, Gujarat, Maharashtra and Uttar Pradesh under the new programme. In the East cluster, it has identified 2.9 MTPA each at Rangia and Hojai in Assam, Godda in Jharkhand and Muzaffarpur in Bihar, which together make up the cluster's 11.6 MTPA total.

In the West cluster, the programme lists 2.9 MTPA each at Mundra and Hazira in Gujarat, and at Raigad, Kalyan and Amravati in Maharashtra, alongside 0.7 MTPA at Dahanu in Maharashtra. These sites total 15.5 MTPA of West-cluster grinding additions. The North component is Dadri Line 2, a 2.9 MTPA grinding project in Uttar Pradesh, leaving the East and West clusters with 27.1 MTPA of the 30 MTPA listed grinding programme.

Management said the projects are intended to create a more balanced manufacturing network by linking clinker and grinding capacity more closely and placing capacity nearer to high-growth markets. Vinod Bahety, chief executive officer of the Adani Group's cement business, said shorter lead distances are expected to reduce logistics cost, while higher efficiency is intended to reduce manufacturing cost. These are management objectives rather than reported savings.

What is Ambuja Cements spending on the expansion?

Ambuja Cements has set total growth capital expenditure, or capex, for this phase at around Rs 14,500 crore. The release does not break down the amount by project, cluster, construction stage, funding source or year, so the figure gives the total announced size of the programme rather than individual site budgets.

Ambuja Cements said the capacity additions and debottlenecking initiatives are intended to support a cost of 4,000 rupees per metric tonne by FY28. That is a management target, not a current cost disclosure. Management linked the target to greater operating efficiency, a better balance between clinker and grinding operations, and lower logistics distance as production moves nearer to markets.

The programme follows 16.3 MTPA of cement capacity and 9 MTPA of clinker capacity added through 11 projects up to 30 September 2026. Ambuja Cements described the new 30 MTPA expansion as the next stage of that growth. The release also cites a pan-India network of 25 integrated units, 37 grinding units and three clinker units, compared with 24 integrated plants and 24 grinding units at the 113.5 MTPA stage.

What capacity will Ambuja Cements have by March 2027?

Ambuja Cements expects total cement capacity to reach 119 MTPA by the end of March 2027, up from 113.5 MTPA after H1 FY27. It commissioned 4.6 MTPA during the first half of FY27 and expects a further 5.6 MTPA to commission or ramp up during H2 FY27, before the FY30 expansion programme is completed.

The 4.6 MTPA completed in H1 FY27 comprised a 1.2 MTPA brownfield expansion at Dahej in Gujarat, a new 2.4 MTPA Salai Banwa grinding unit in Uttar Pradesh, and a 1 MTPA brownfield expansion at Kalamboli in Maharashtra. Those projects took capacity to 113.5 MTPA, showing that the reported base includes additions already completed during FY27.

During H2 FY27, 3.2 MTPA is expected to stabilise and ramp up through the 1.2 MTPA Bathinda grinding unit in Punjab and the 2 MTPA Jodhpur Penna integrated unit in Rajasthan. A further 2.4 MTPA at the Warisaliganj grinding unit in Bihar is expected to be commissioned in the same half. Together, these projects account for the stated 5.6 MTPA increase to 119 MTPA by March 2027.

What does the Ambuja Cements plan mean for its manufacturing network?

Ambuja Cements' plan places new grinding assets across six states while adding clinker supply in Assam, Maharashtra and Gujarat. The 30 MTPA listed grinding programme is weighted towards the West and East, with 15.5 MTPA and 11.6 MTPA respectively, compared with 2.9 MTPA in the North.

The 155 MTPA FY30 target is 41.5 MTPA above the 113.5 MTPA reported after H1 FY27, while the announced programme is described as about 30 MTPA plus debottlenecking initiatives. The release sets out the 5.6 MTPA H2 FY27 pipeline to reach 119 MTPA by March 2027, but does not provide a project-by-project reconciliation for every increment from 119 MTPA to 155 MTPA.

Conclusion

Ambuja Cements has paired a Rs 14,500 crore capital programme with projects spanning the East, West and North clusters, including 30 MTPA of listed grinding capacity and 10.3 MTPA of disclosed clinker additions. The stated strategy is to extend market reach while aligning clinker supply, grinding assets and transport distances more closely.

The next disclosed milestone is the H2 FY27 ramp-up of the 1.2 MTPA Bathinda and 2 MTPA Jodhpur Penna facilities, alongside commissioning of the 2.4 MTPA Warisaliganj unit. Beyond March 2027, delivery of the FY30 projects, additional debottlenecking and management's 4,000-rupees-per-metric-tonne FY28 cost target remain the key disclosed matters to watch.