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NDTV
11 hours ago
- Business
- NDTV
Adani Group's Cement Business Contributes To 30% Of India's Homes: Ambuja Cement CEO
New Delhi: Adani Group firm Ambuja Cements -- the second largest cement producer in the country -- contributes to nearly 30 per cent of the cement used for India's homes and infrastructure, the company said in its latest annual report. Ambuja Cements, which has crossed 100 MTPA (Million Tonnes Per Annum) capacity in FY25 in a record time, mainly through acquisitions, now aims to reach 118 MTPA by FY 2026 and 140 MTPA by FY 2028, primarily through brownfield expansion projects. "Ambuja Cements, now a core part of the Adani Group's cement business, contributes to nearly 30 per cent of India's homes and infrastructure. This is a story of resilience fuelled by a growth mindset -- a journey that marries legacy with innovation and is inspired by a clear and purposeful vision," said its CEO Vinod Bahety, while addressing the shareholders. This is a story of "resilience fuelled by a growth mindset" and is inspired by a clear and purposeful vision and testament to the focused execution, agility, and ambition that define our transformation. "A key catalyst behind this success has been our series of efficient and timely acquisitions, each completed with precision and synergy. Alongside inorganic growth, our organic expansion projects continue to gain strong momentum across the country, bringing us closer to our ambitious long-term target of reaching 140 MTPA by 2028," he said. In FY24, Ambuja crossed the milestone of 100 million tonnes per annum (MTPA) of consolidated cement capacity, becoming the ninth largest cement company globally. Adani Group is a new entrant in the cement sector. It jumped into the cement sector in September 2022, after acquiring controlling stakes in Ambuja Cement from Swiss firm Holcim for cash proceeds of USD 6.4 billion (about Rs 51,000 crore). Later, Ambuja Cements, which owns a 51 per cent stake in ACC Ltd, pursued inorganic growth, acquiring small companies as Hyderabad-based Penna Cement and Saurastra-based Sanghi Industries. Earlier this year, it also acquired Orient Cement from CK Birla group. "Having achieved nearly 50 per cent growth in just 30 months, our roadmap is clear: reaching 118 MTPA by FY26 and 140 MTPA by FY28, primarily through brownfield expansion projects," it said. In FY26, Ambuja Cement has target of commissioning clinker and grinding units across strategic locations such as Bhatapara, Sankrail, Sindri, Salai-Banwa, Dahej, Marwar, Kalamboli, Krishnapatanam, Bathinda, Jodhpur, Maratha, and Warisaliganj. "These projects are progressing well, with significant civil and equipment work underway," he said, adding, "Looking beyond FY26, nine additional grinding unit projects are already underway, all aligned with our vision to reach 140 MTPA by FY 2028." In FY25, Adani group's annual sales volume reached 65.2 million tonnes and its revenue stood at Rs 35,045 crore with a profit after tax of Rs 5,158 crore. "Our strong balance sheet, marked by a debt-free status, underscores our prudent capital allocation and financial discipline," said Bahety. Besides, Ambuja Cement is also working on cost optimisation, which according to Bahety remains a cornerstone of our strategy, enabling it to maintain competitiveness and enhance margins amid challenging market conditions. The company has substantially reduced its logistics cost through setups such as seaborne transport. According to Cement Manufacturers' Association, the logistics costs for the industry can go as high as 30-35 per cent. "By shifting a significant portion of our freight to seaborne transport, optimising depot locations, and leveraging GPWIS (General Purpose Wagon Inward System) and BCFC (Bulk Cement Freight Consortium) rakes, we have achieved a 6 per cent reduction in logistics costs to date," he said, adding, "Our ongoing initiatives aim for a further 15 per cent reduction in logistics costs by FY30, reflecting our continuous drive for operational efficiency." Besides, it aims for 60 per cent of its future cement capacity and 83 per cent of clinker operations to be powered by green energy. The company is also quite bullish about the growth prospects of the Indian cement industry, where its expects a "significant" growth, driven by infrastructure projects and urban development. "Installed capacity is expected to reach 850 million tonnes per annum by 2030 and 1,350 million tonnes by 2050," it said. The Indian cement market is led by Aditya Birla Group firm UltraTech Cement Ltd, which has a consolidated capacity of 183.06 MTPA. It is also expanding its capacity through acquisitions and capacity enhancement as it faces competition from billionaire Gautam Adani-led Adani Group's Ambuja Cement. It has recently acquired India Cements, Kesoram Industries' cement business and UAE-based RAKWCT. Besides, it acquired a minority stake of 8.69 per cent from the promoters of Meghalaya-based Star Cement.
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Business Standard
14 hours ago
- Business
- Business Standard
Ambuja makes 30% of cement used in infra, housing projects in India: CEO
Ambuja Cements accounts for nearly 30 per cent of the cement used in housing and infrastructure projects in India, the company, part of the Adani Group, stated in its annual report. The company, the second-largest cement maker in India, has surpassed 100 million tonnes per annum (MTPA) of cement capacity in FY25 and is targeting 118 MTPA by financial year 2025–26 (FY26) and 140 MTPA by FY28. The expansion will be primarily driven by brownfield projects. According to Ambuja Cements Chief Executive Officer Vinod Bahety, 'Ambuja Cements, now a core part of the Adani Group's cement business, contributes to nearly 30 per cent of India's homes and infrastructure. This is a story of resilience fuelled by a growth mindset – a journey that marries legacy with innovation and is inspired by a clear and purposeful vision.' Bahety added, 'A key catalyst behind this success has been our series of efficient and timely acquisitions, each completed with precision and synergy. Alongside inorganic growth, our organic expansion projects continue to gain strong momentum across the country, bringing us closer to our ambitious long-term target of reaching 140 MTPA by 2028.' The company became the ninth-largest cement producer globally in FY24 after crossing 100 MTPA in consolidated capacity. The Adani Group entered the cement industry in September 2022 with the acquisition of Ambuja Cements from Switzerland-based Holcim for $6.4 billion. The company said, 'Having achieved nearly 50 per cent growth in just 30 months, our roadmap is clear: reaching 118 MTPA by FY26 and 140 MTPA by FY28, primarily through brownfield expansion projects.' Key projects planned for FY26 include clinker and grinding units at Bhatapara, Sankrail, Sindri, Salai-Banwa, Dahej, Marwar, Kalamboli, Krishnapatnam, Bathinda, Jodhpur, Maratha, and Warisaliganj. Ambuja Cements is also progressing on nine grinding unit projects beyond FY26. In FY25, the company reported 65.2 million tonnes in sales volume, ₹35,045 crore in revenue, and ₹5,158 crore in profit after tax. Bahety said, 'Our strong balance sheet, marked by a debt-free status, underscores our prudent capital allocation and financial discipline.' The company is focusing on logistics cost optimisation and green energy. 'By shifting a significant portion of our freight to seaborne transport, optimising depot locations, and leveraging GPWIS and BCFC rakes, we have achieved a 6 per cent reduction in logistics costs to date,' Bahety said. Ambuja Cements targets a further 15 per cent logistics cost reduction by FY30. It aims to power 60 per cent of future cement capacity and 83 per cent of clinker operations with green energy. The company projects significant industry growth, estimating installed cement capacity in India to reach 850 MTPA by 2030 and 1,350 MTPA by 2050.
India.com
01-05-2025
- Business
- India.com
Gautam Adani's BIG plan to compete with Kumar Mangalam Birla, this company aims 118 million tonnes…, challenge for…
Adani- Birla Adani Group-owned Ambuja Cements is aiming to achieve an annual production capacity of 118 million tonnes by the end of this fiscal year. The company has already aggressively expanded by acquiring several smaller players over the past two years, and has already surpassed the 100 million tonnes per annum (MTPA) milestone. After which Ambuja Cements became the ninth-largest cement manufacturer globally, according to its latest earnings statement. As part of its future plans, the Adani Group is competing with UltraTech Cements, owned by the Aditya Birla Group. Ambuja Cements plans to increase its capacity to 140 MTPA by 2028 and become a leading player in the global cement industry. 'This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 MTPA capacity. Additionally, we have ongoing organic expansions at various stages across the country, which will help us achieve 118 MTPA capacity by end of FY 2026, a significant step, bringing us closer to our goal of 140 MTPA by 2028,' said its CEO Vinod Bahety. Adani Cement this month completed the acquisition of the majority stake in the CK Birla group firm Orient Cement. As per its expansion strategy, the group is expanding its capacity in the cement industry through inorganic route by acquiring small rivals and through brownfield expansion by adding capacity to the existing units. The Adani group aspires to have 140 MTPA capacity by FY28 pan-India, which will help reduce overall lead distances and logistics costs for the cement business and improve market share in its core markets. In June 2024, Adani had announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, which added 14 MTPA capacity to the country's second-largest manufacturer. In December last year, it completed the acquisition of Saurashtra-based Sanghi Industries Ltd at an enterprise value of Rs 5,185 crore. Adani group entered into the cement sector in September 2022, after acquiring controlling stakes in Ambuja Cements from Swiss firm Holcim for cash proceeds of USD 6.4 billion (about Rs 51,000 crore). Ambuja Cements owns a 51 per cent stake in ACC Ltd. Later it also launched a Rs 31,000-crore open offer for the acquisition of 26 per cent additional stakes from public shareholders. The Indian cement market is led by Aditya Birla Group firm UltraTech Cement Ltd, which has a consolidated capacity of 183.06 MTPA. (With inputs from PTI)
Time of India
30-04-2025
- Business
- Time of India
Ambuja Cements' net profit dips 15.71% in Q4 FY25
NEW DELHI: Ambuja Cements , the cement and building materials company of Adani Group, has reported a decline of 15.71 per cent in its net consolidated profit during the quarter ended March 31, 2025. Its profit after tax stood at ₹1,282.24 crore in Q4 FY25, as against ₹1,521.21 crore it recorded in the corresponding quarter of the previous fiscal, the company said in a BSE filing. The company's net consolidated total income stood at ₹10,461.87 crore in Q4 FY25, a growth of 14.62 per cent from ₹9,127.45 crore it recorded in the similar quarter last year. It's annual volume was up by 10% at 65.2 Mn T. Vinod Bahety , whole time director & CEO of the company said, "We have ongoing organic expansions at various stages across the country, which will help us achieve 118 MTPA capacity by end of FY26, a significant step, bringing us closer to our goal of 140 MTPA by 2028." The board has recommended dividend of ₹2 per equity share of face value of ₹2 each fully paid-up for the financial year 2024-25. The board also approved reappointment of Maheswar Sahu, Rajnish Kumar, Ameet Desai and Purvi Sheth as independent directors for a second term of three years from September 16, 2025 to September 15, 2028. Its net worth increased by ₹12,969 crore during the year and stands at ₹63,811 crore. The company remains debt free. In March 2025, the company completed the acquisition of a 46.66% equity stake in Orient Cement. It commissioned 2.4 MTPA brownfield expansion of GU in Farakka (WB), debottlenecking of 0.5 MTPA across various plants. It also commissioned 299 MW RE power (200 MW Solar/99 MW Wind) out of the planned total of 1,000 MW, with balance progressively to be achieved by June 2026.
The Hindu
29-04-2025
- Business
- The Hindu
Ambuja Cements Q4 profit at ₹1,282.24 crore
Adani Group firm Ambuja Cements Ltd on Tuesday (April 29, 2025) reported a consolidated net profit of ₹1,282.24 crore for the fourth quarter ended March 31, 2025. The company had reported a net profit of ₹1,521.21 crore in the January-March quarter a year ago, according to a regulatory filing by Ambuja Cements Ltd (ACL). Its consolidated revenue from operations was at ₹9,802.47 crore in the March quarter. It was ₹8,785.28 crore in the corresponding period of the last fiscal year. The consolidated financial results of ACL for the March quarter are not comparable due to the acquisition of several companies, including Hyderabad-based Penna Cement Industries Ltd (PCIL) and Tamil Nadu-based MY Home Industries. "The consolidated financial results include the financial results of PCIL and its subsidiaries from the acquisition date. Accordingly, the results for the current quarter and year ended March 31, 2025, are not comparable with the quarter and year ended March 31, 2024, to that extent," it said. ACL's total expenses in the March quarter were at ₹8,821.70 crore. The total Income of ACL, which includes other income, was at ₹10,461.87 crore in the March quarter. Ambuja Cements, the second-largest cement manufacturer of the country, reported consolidated volume sales of 18.7 Million Tonnes during the reported quarter, the "highest ever volume in a quarter." The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd, in which it owns around 51% stake along with Sanghi Industries and Penna Industries. On a standalone basis, Ambuja Cements reported a profit after tax of ₹928.88 crore in the March quarter. It was ₹532.29 crore in the year-ago quarter. Its total income on a standalone basis was at ₹6,123.43 crore in the third quarter of FY'25. On a standalone basis, the sales volume of cement and clinker units stood at 11.6 MT. For the financial year which ended March 31, 2025, Ambuja Cements' net profit was at ₹5,158.41 crore. This was at ₹4,734.63 crore in FY'24. In FY'25, Ambuja Cements' total consolidated income was at ₹37,649.01 crore. "This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 MTPA capacity. Additionally, we have ongoing organic expansions at various stages across the country, which will help us achieve 118 MTPA capacity by end of FY 2026, a significant step, bringing us closer to our goal of 140 MTPA by 2028," Whole Time Director & CEO Vinod Bahety said. Shares of Ambuja Cements Ltd on Tuesday settled at ₹534.10 per scrip on BSE, down 2.01% from the previous close.
