Gautam Adani-led Adani group, which owns Ambuja Cements and ACC Ltd, is targeting to capture around one-fifth of the Indian cement market by FY28.
Adani Cement business will implement its accelerated capex program through internal accruals and the business will continue to "remain debt free," said an investor presentation shared by Ambuja Cements.
Besides, Adani Cement also amplifies the pace of capacity expansion and is expected to have an accelerated growth rate of 16 per cent to reach 140 MTPA (million tonnes per annum) by FY2028.
Presently, Adani Cement is the second leading company in the sector after the Aditya Birla group firm UltraTech Cements. Ambuja, with its subsidiaries ACC Ltd, has the capacity to produce 77.4 million tonnes of cement annually from 18 integrated cement manufacturing plants and 18 cement grinding units across the country. It had recently acquired Sanghi Industries Ltd.
The group has certain enablers for capacity enhancement and it already has land in possession and some are in the advanced stages of acquisition. It has a cumulative 8,000 million metric tonnes of limestone reserve, a major raw material for the cement industry, " in possession at nil to nominal premium," Adani Cements said.
Moreover, it has 40 per cent of Fly Ash requirements under the long-term arrangement, which will increase to over 50 per cent by 2028.Ambuja further stated it has "better enterprise risk management" and 65 per cent of the total cost of cement has synergies with a group or where the Group is the market leader.
In addition to that Ambuja continues to remain debt-free with a net worth of Rs 43,000 crore (around USD 5.2 billion), and cash and cash equivalents of Rs 8,591 crore (USD 1.04 billion) as of December 2023.
