Ambuja Cements Secures New 24 Limestone Mines

Ambuja Cements, a key entity under the Adani Group, has significantly expanded its resource base by securing 24 new limestone mines in fiscal year 2024, adding an estimated 587 million tonnes to its reserves. This strategic acquisition aligns with Ambuja's aggressive expansion strategy to enhance its self-sufficiency in raw materials.

In addition to these acquisitions, Ambuja Cements has gained access to 1 billion tonnes of limestone reserves from Sanghi Industries following a Rs 5,185 crore acquisition in November last year. The company highlighted the importance of securing coal and limestone mines to meet 40% of its coal requirements through the Dahegaon-Gowari and Gare Palma coal blocks.

The Adani Group aims to reach a capacity of 140 million tonnes per annum (MTPA) by 2028 through a combination of brownfield expansions and strategic acquisitions. The recent acquisition of Hyderabad-based Penna Cement for Rs 10,422 crore is expected to add 14 MTPA to Ambuja's capacity, bringing the total to 89 MTPA.

Despite the substantial investment, Ambuja Cements maintains a robust financial position, with CFO Vinod Bahety projecting over Rs 10,000 crore in cash reserves by year-end. This solid financial footing enables strategic capital deployment, targeting returns exceeding 15% in terms of Return on Capital Employed (ROCE).

Ambuja Cements is also advancing its sustainability efforts, investing over Rs 10,000 crore in green power projects. The company aims to power 60% of its expanded capacity with 1 GW of solar and wind power, along with 376 MW of waste heat recovery systems by FY 2027-28, aligning environmental goals with economic benefits.

News by Rahul Yelligetti