Adani Group's ambitious entry into the cement sector has rapidly transformed the competitive landscape. With key acquisitions and an assertive expansion strategy, Ambuja Cements is emerging as a cornerstone in India’s housing and infrastructure development.
Ambuja Cements, India’s second-largest cement manufacturer, supplies nearly 30% of the cement used in building the nation’s homes and infrastructure, according to its latest annual report.
Ambuja Cements, now part of the Adani Group, announced that it has achieved a consolidated cement production capacity of 100 MTPA in FY25. This milestone places the company among the top global cement producers and marks a major feat accomplished primarily through strategic acquisitions.
The company has set a goal to expand to 118 MTPA by FY26 and reach 140 MTPA by FY28. This growth will be fuelled predominantly by brownfield expansion projects aimed at enhancing operational efficiency and optimising resource deployment.
Adani Group entered the cement business in September 2022 with the acquisition of Ambuja Cement from Holcim for $6.4 billion (approximately ₹51,000 crore). Since then, Ambuja has acquired multiple companies, including:
Ambuja also holds a 51% stake in ACC Ltd, enabling the group to consolidate its position in the market swiftly. The result is a nearly 50% capacity growth in just 30 months.
To achieve its 140 MTPA goal by FY28, Ambuja is executing expansion projects at several strategic locations. Key upcoming units include:
Additionally, 9 more grinding unit projects are in progress beyond FY26.
In FY25, Adani Cement Group recorded:
The company reported a strong balance sheet, with a debt-free status reflecting prudent capital management and financial discipline.
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A vital element of Ambuja’s strategy is cost optimisation. The firm has reduced logistics costs by 6% through initiatives such as:
Further cost cuts are targeted, aiming for a 15% reduction in logistics expenses by FY30. This is particularly significant as logistics account for 30% to 35% of total costs in the cement industry.
Ambuja plans to power 60% of its future cement capacity and 83% of its clinker operations using green energy. This transition supports sustainability goals while also enhancing energy efficiency in operations.
Ambuja Cements remains bullish on the Indian cement sector's long-term growth. It expects demand to rise substantially due to government-led infrastructure initiatives and rapid urbanisation. Forecasts include:
UltraTech Cement, a part of the Aditya Birla Group, currently leads the Indian cement market with a 183.06 MTPA consolidated capacity. It is also expanding aggressively, having acquired India Cements, Kesoram Industries' cement unit, and UAE-based RAKWCT.
Ambuja Cements, backed by Adani Group, has rapidly risen to prominence in India's cement landscape. With an ambitious target of 140 MTPA by FY28, cost efficiency measures, and a transition to green energy, the company aims to cement its role as a key contributor to the country’s housing and infrastructure development.
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Published on: Jun 9, 2025, 3:30 PM IST
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