Ambuja Cements, a key component of the Adani Group, is making substantial contributions to India's housing and infrastructure development. According to Ambuja Cement's CEO, Vinod Bahety, the company's cement business currently supplies approximately 30% of the cement used in the construction of homes and infrastructure projects across the nation. This significant contribution highlights the Adani Group's growing influence and importance in India's cement market.
The Adani Group entered the cement sector in September 2022 by acquiring controlling stakes in Ambuja Cements and ACC from Swiss firm Holcim for $6.4 billion. Since then, Ambuja Cements has pursued inorganic growth, acquiring companies such as Penna Cement and Sanghi Industries. Earlier this year, it also acquired Orient Cement from the CK Birla group.
Ambuja Cements has rapidly expanded its production capabilities through strategic acquisitions and brownfield projects. The company crossed the milestone of 100 million tonnes per annum (MTPA) of consolidated cement capacity in FY25. Looking ahead, Ambuja Cements aims to reach 118 MTPA by FY26 and 140 MTPA by FY28, primarily through brownfield expansion projects.
Vinod Bahety emphasized the company's growth mindset, stating that Ambuja Cements' contribution to India's infrastructure 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." He highlighted the company's efficient and timely acquisitions as key catalysts for success, noting that organic expansion projects are also gaining momentum across the country.
The Adani Group's strategic initiatives extend beyond capacity expansion. Cost optimization remains a cornerstone of Ambuja Cements' strategy, enabling the company to maintain competitiveness and enhance margins. The company has substantially reduced its logistics costs through measures such as seaborne transport. Additionally, Ambuja Cements is committed to sustainability, utilizing renewable power generation capabilities like heat recovery systems to minimize carbon emissions. Ambuja Cements is also the first cement manufacturer to join the Alliance for Industrial Decarbonization (AFID).
The Indian cement market is witnessing intense competition between major players like UltraTech Cement and the Adani Group. Adani is targeting a 20% market share by FY28, up from its current share of 14%. To achieve this, the group is focused on capacity expansion through both organic and inorganic routes.
Ambuja Cements' recent acquisition of My Home Group's 1.5 MTPA cement grinding unit in Tuticorin, Tamil Nadu, will further enhance its coastal footprint in the southern markets. The company's strategic acquisitions, significant limestone reserves, and long-term arrangements for fly ash requirements position it favorably to achieve its market share target.
The Adani Group's entry into the cement sector has spurred dealmaking activity in the industry, with UltraTech Cement also making acquisitions to capitalize on expected government spending on infrastructure. The top five cement manufacturers in India are expected to increase their market share to 55% by March of next year.
Overall, the Adani Group, through Ambuja Cements and ACC, is playing a vital role in India's infrastructure development, contributing significantly to the cement used in homes and infrastructure projects nationwide. With ambitious expansion plans and a focus on sustainability and cost optimization, the Adani Group is poised to further solidify its position in the Indian cement market.
