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What is the story about?
Shares of Ambuja Cements jumped over 4% intraday on Monday, November 2, after the company announced 30 million tonne per annum (MTPA) of cement capacity expansion across India with total growth capex programme of around ₹14,500 crore.
The programme will expand the manufacturing network of the Adani portfolio company across the East, West and North of the country, according to a regulatory filing on Monday.
The company said the expansion would build on its current pan-India capacity of 113.5 MTPA, spread across 24 integrated plants and 24 grinding units.
"This phase of growth and additional debottlenecking initiatives will ramp up total capacity to 155 MTPA by FY30," said Vinod Bahety, chief executive officer, Cement Business, Adani Group. "The total growth capex programme is around ₹14,500 crore," he said.
Grinding and Clinker capacity
The programme will add around 30 MTPA of grinding capacity, comprising 15.5 MTPA in the West Cluster, 11.6 MTPA in the East Cluster and 2.9 MTPA in the North Cluster, according to the filing.
In the East, the company will add 2.9 MTPA each at Rangia and Hojai in Assam, Godda in Jharkhand and Muzaffarpur in Bihar.
In the West, it will add 2.9 MTPA each at Mundra and Hazira in Gujarat, and Raigad, Kalyan and Amravati in Maharashtra. A further 0.7 MTPA will be added at Dahanu in Maharashtra.
The North Cluster will see an addition of 2.9 MTPA at Dadri Line 2 in Uttar Pradesh.
The programme also includes 10.3 MTPA of new clinker capacity. This comprises 4 MTPA at Umrangso in Assam, 4 MTPA at Maratha and 2.3 MTPA at Mundra.
The company said the additions would strengthen its upstream network to support the expanded grinding capacity.
Projects already under way
The new programme builds on capacity additions already under way, according to the filing.
In the first half of FY27, Ambuja Cements added 4.6 MTPA, taking its total cement capacity to 113.5 MTPA. This included 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 near-term pipeline includes another 3.2 MTPA across the Bathinda Grinding Unit in Punjab (1.2 MTPA) and the Jodhpur Penna Integrated Unit in Rajasthan (2 MTPA).
The Jodhpur unit has stabilised and is expected to ramp up in H2 FY27. The 2.4 MTPA Warisaliganj Grinding Unit in Bihar is also scheduled for commissioning in H2 FY27.
Ambuja's total cement capacity is expected to reach 119 MTPA by March 2027, the filing said.
Stock Reaction
Shares of Ambuja Cements jumped 4.14% as of 12:13 pm on Monday. The company's shares have fallen 35.25% in the year-to-date period, with additional loses of 37.21% in the trailing 12-month period.
Also Read: Welspun Living shares surge 11% after strong Q2; reiterates double-digit revenue growth target
The programme will expand the manufacturing network of the Adani portfolio company across the East, West and North of the country, according to a regulatory filing on Monday.
The company said the expansion would build on its current pan-India capacity of 113.5 MTPA, spread across 24 integrated plants and 24 grinding units.
"This phase of growth and additional debottlenecking initiatives will ramp up total capacity to 155 MTPA by FY30," said Vinod Bahety, chief executive officer, Cement Business, Adani Group. "The total growth capex programme is around ₹14,500 crore," he said.
Grinding and Clinker capacity
The programme will add around 30 MTPA of grinding capacity, comprising 15.5 MTPA in the West Cluster, 11.6 MTPA in the East Cluster and 2.9 MTPA in the North Cluster, according to the filing.
In the East, the company will add 2.9 MTPA each at Rangia and Hojai in Assam, Godda in Jharkhand and Muzaffarpur in Bihar.
In the West, it will add 2.9 MTPA each at Mundra and Hazira in Gujarat, and Raigad, Kalyan and Amravati in Maharashtra. A further 0.7 MTPA will be added at Dahanu in Maharashtra.
The North Cluster will see an addition of 2.9 MTPA at Dadri Line 2 in Uttar Pradesh.
The programme also includes 10.3 MTPA of new clinker capacity. This comprises 4 MTPA at Umrangso in Assam, 4 MTPA at Maratha and 2.3 MTPA at Mundra.
The company said the additions would strengthen its upstream network to support the expanded grinding capacity.
Projects already under way
The new programme builds on capacity additions already under way, according to the filing.
In the first half of FY27, Ambuja Cements added 4.6 MTPA, taking its total cement capacity to 113.5 MTPA. This included 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 near-term pipeline includes another 3.2 MTPA across the Bathinda Grinding Unit in Punjab (1.2 MTPA) and the Jodhpur Penna Integrated Unit in Rajasthan (2 MTPA).
The Jodhpur unit has stabilised and is expected to ramp up in H2 FY27. The 2.4 MTPA Warisaliganj Grinding Unit in Bihar is also scheduled for commissioning in H2 FY27.
Ambuja's total cement capacity is expected to reach 119 MTPA by March 2027, the filing said.
Stock Reaction
Shares of Ambuja Cements jumped 4.14% as of 12:13 pm on Monday. The company's shares have fallen 35.25% in the year-to-date period, with additional loses of 37.21% in the trailing 12-month period.
Also Read: Welspun Living shares surge 11% after strong Q2; reiterates double-digit revenue growth target
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