Ambuja Cements Plans Major Expansion with ₹14,500 Crore Investment
Ambuja Cements announces a significant expansion to increase cement production capacity by 30 million tons per year.
Ahmedabad, November 2 (Daily Kiran) : Ambuja Cements Limited announced its plans for a significant expansion on November 2, 2026. The company aims to increase its cement production capacity by 30 million tons per annum (MTPA) through new greenfield and brownfield projects. This ambitious initiative will involve an estimated investment of ₹14,500 crore.
As part of the Adani Group’s portfolio, Ambuja Cements is among India’s leading building material solution providers. The expansion will enhance its manufacturing network in rapidly growing markets across eastern, western, and northern India. Currently, the company operates 24 integrated plants and 24 grinding units, boasting a total cement production capacity of 113.5 MTPA.
Vinod Beheti, CEO of the cement division within the Adani Group, emphasized that the next phase of expansion focuses on enhancing the quality of development and creating a more balanced manufacturing network. By strengthening the synergy between clinker and grinding capacities and expanding closer to key markets, the company aims to introduce greater flexibility into its network.
With the proposed expansion, Ambuja’s cement production capacity is expected to reach 155 MTPA by the fiscal year 2030. Beheti noted that the expansion will also improve market access, logistics, and cost efficiency, thereby bolstering the overall competitiveness of the business. The company has a robust supply chain ecosystem in these markets, along with a strong brand equity and premium cement market share.
The expansion plan includes adding 15.5 MTPA in the western cluster, 11.6 MTPA in the eastern cluster, and 2.9 MTPA in the northern cluster. Additionally, clinker production capacity will also see an increase, with new capacities of 4 MTPA in Assam’s Umrangso, 4 MTPA in Maratha, and 2.3 MTPA in Mundra.
Beheti added that these new capacities will not only help increase market share but also reduce manufacturing costs through enhanced efficiency. Being closer to the market will minimize transportation distances and logistics costs, paving the way to achieve a target of ₹4,000 per metric ton (PMT) by fiscal year 2028.
In the first half of fiscal year 2027, the company added 4.6 MTPA of capacity, including a 1.2 MTPA brownfield expansion in Dahej, Gujarat, a new 2.4 MTPA grinding unit in Uttar Pradesh, and a 1.0 MTPA brownfield expansion in Kalamboli, Maharashtra. This brings the total cement production capacity to 113.5 MTPA.
Looking ahead, further capacity increases are anticipated. The company is set to add 1.2 MTPA at its grinding unit in Bhatinda, Punjab, and 2 MTPA at the Jodhpur Penna integrated unit in Rajasthan. Both projects are expected to stabilize at a combined capacity of 3.2 MTPA, with production increases projected in the second half of fiscal year 2027.
Additionally, the grinding unit in Warisleeganj, Bihar, with a capacity of 2.4 MTPA, is slated to commence operations in the second half of fiscal year 2027. Ambuja Cements anticipates its total production capacity will reach 119 MTPA by the end of March 2027.
Since its acquisition, Ambuja Cements has successfully completed 11 capacity expansion projects as of September 30, 2026, adding 16.3 MTPA in cement production and 9.0 MTPA in clinker production capacity.
