Ambuja Cements Ltd has firmed up a major expansion programme involving an investment of around ₹14,500 crore to add approximately 30 million tonnes per annum (MTPA) of cement capacity across India, taking its total capacity to 155 MTPA by FY30.
The expansion will strengthen the company’s manufacturing footprint across the East, West and North, with new greenfield and brownfield projects planned in Assam, Bihar, Jharkhand, Gujarat, Maharashtra and Uttar Pradesh.
Part of the Adani Portfolio, Ambuja Cements currently has an installed cement capacity of 113.5 MTPA across 24 integrated plants and 24 grinding units. The proposed expansion, along with additional debottlenecking initiatives, is aimed at strengthening its market presence while improving manufacturing and logistics efficiencies.
West accounts for the largest capacity addition
The proposed expansion includes approximately 15.5 MTPA of additional grinding capacity in the West, 11.6 MTPA in the East and 2.9 MTPA in the North.
In the East, the company plans to establish 2.9 MTPA grinding units each at Rangia and Hojai in Assam, Godda in Jharkhand and Muzaffarpur in Bihar.
The West Cluster will see additions at Mundra and Hazira in Gujarat, with 2.9 MTPA capacity each. In Maharashtra, the planned projects include 2.9 MTPA units at Raigad, Kalyan and Amravati, along with a 0.7 MTPA addition at Dahanu.
In the North, a 2.9 MTPA expansion at Dadri Line 2 in Uttar Pradesh is planned.
The programme also includes additional clinker capacity to support the expanded grinding network. This comprises 4 MTPA at Umrangso in Assam, 4 MTPA at Maratha and 2.3 MTPA at Mundra.
Capacity to reach 119 MTPA by March 2027
The latest expansion programme builds on capacity additions already completed or under execution.
During the first half of FY27, Ambuja added 4.6 MTPA through a 1.2 MTPA brownfield expansion at Dahej in Gujarat, the 2.4 MTPA Salai Banwa Grinding Unit in Uttar Pradesh and a 1 MTPA brownfield expansion at Kalamboli in Maharashtra.
The company’s capacity stood at 113.5 MTPA following these additions.
A further 5.6 MTPA is expected to be commissioned or ramped up during the second half of FY27. This includes 1.2 MTPA at the Bathinda Grinding Unit in Punjab, 2 MTPA at Jodhpur Penna Integrated Unit in Rajasthan and the 2.4 MTPA Warisaliganj Grinding Unit in Bihar.
These additions are expected to take Ambuja’s total cement capacity to 119 MTPA by March 2027.
Focus on manufacturing and logistics costs
Adani Group, CEO – Cement Business, Vinod Bahety said the next expansion phase would focus on building a more balanced manufacturing network by strengthening the link between clinker and grinding capacities and locating facilities closer to high-growth markets.
The company expects the expanded network to improve supply-chain flexibility, reduce transportation distances and lower logistics and manufacturing costs.
Ambuja is targeting a cost of ₹4,000 per tonne by FY28, with the new capacity additions and debottlenecking initiatives expected to support the cost-reduction drive.
Since its acquisition, the company has completed 11 capacity projects, adding 16.3 MTPA of cement capacity and 9 MTPA of clinker capacity up to September 30, 2026.
The latest programme marks the next phase of its expansion strategy, with the company aiming to combine increased production scale with wider geographic reach and operating efficiencies