Ambuja Cements Announces Rs 14,500 Crore Expansion Plan to Add 30 MTPA Capacity by FY30
Ambuja Cements will invest approximately Rs 14,500 crore in new greenfield and brownfield projects across India, targeting 155 MTPA cement capacity by FY30.
- Ambuja Cements plans to add 30 MTPA capacity through an investment of Rs 14,500 crore.
- The expansion will cover West, East and North India, with new grinding and clinker facilities.
- The company’s total cement capacity is targeted to reach 155 MTPA by FY30.
Ambuja Cements Limited has announced its next phase of expansion, planning to invest around Rs 14,500 crore to increase its cement manufacturing capacity by 30 million tonnes per annum (MTPA). The company announced the expansion programme on Monday, with new greenfield and brownfield projects planned across major cement markets in Western, Eastern and Northern India. The investment is expected to take its total cement capacity to 155 MTPA by FY30.
The expansion will include additional grinding capacity of 15.5 MTPA in the West Cluster, 11.6 MTPA in the East Cluster and 2.9 MTPA in the North Cluster. Alongside these facilities, Ambuja will strengthen its clinker manufacturing network with new capacity additions at Umrangso in Assam, Maratha and Mundra in the western region. These projects are intended to improve the company’s production network and support growing cement demand across key markets.
New Grinding and Clinker Units Planned Across Three Regions
The proposed investment will focus on expanding both cement grinding and clinker production facilities. The company plans to establish 4 MTPA of additional clinker capacity at Umrangso in Assam, another 4 MTPA at Maratha and 2.3 MTPA at Mundra.
The regional expansion details are as follows:
| Region | Additional Grinding Capacity |
|---|---|
| West Cluster | 15.5 MTPA |
| East Cluster | 11.6 MTPA |
| North Cluster | 2.9 MTPA |
| Total | 30 MTPA |
The company believes that increasing production capacity closer to consumption markets will help improve supply-chain efficiency, reduce transportation distances and lower logistics expenses.
Ambuja Cements Highlights Cost Efficiency and Market Expansion
Commenting on the expansion strategy, Vinod Bahety, CEO – Cement Business, Adani Group, said the company’s focus is on building a more balanced manufacturing network while maintaining the quality of growth.
He highlighted the importance of strengthening the connection between clinker production and grinding facilities, particularly in markets with strong growth potential. According to Bahety, the strategy will provide greater operational flexibility and improve the company’s ability to serve customers efficiently.
He also stated that the additional capacity could help reduce manufacturing expenses and transportation costs by bringing production facilities closer to demand centres. Ambuja Cements is targeting a manufacturing cost of Rs 4,000 per tonne by FY28 as part of its efficiency improvement programme.
Company Already Has 113.5 MTPA Cement Capacity
Ambuja Cements has continued to expand its manufacturing network through a series of capacity additions. During the first half of FY27, the company added 4.6 MTPA of cement capacity through three projects:
- Dahej, Gujarat: A 1.2 MTPA brownfield expansion.
- Salai Banwa, Uttar Pradesh: A new grinding unit with 2.4 MTPA capacity.
- Kalamboli, Maharashtra: A 1.0 MTPA brownfield expansion.
These additions took the company’s total cement manufacturing capacity to 113.5 MTPA, supported by 24 integrated plants and 24 grinding units across India.
Ambuja has also completed 11 capacity expansion projects since its acquisition, adding 16.3 MTPA of cement capacity and 9 MTPA of clinker capacity up to 30 September 2026.
More Capacity Additions Expected by March 2027
Apart from the newly announced long-term expansion programme, Ambuja Cements has several projects in its near-term pipeline.
The Bathinda Grinding Unit in Punjab, with 1.2 MTPA capacity, and the Jodhpur Penna Integrated Unit in Rajasthan, with 2 MTPA capacity, are expected to strengthen the company’s Northern operations. The Jodhpur unit has stabilised and is expected to ramp up during the second half of FY27.
The company is also preparing to commission its 2.4 MTPA Warisaliganj Grinding Unit in Bihar during the second half of FY27.
With these additions, Ambuja Cements expects its total cement manufacturing capacity to reach approximately 119 MTPA by the end of March 2027.
What the Expansion Means for India’s Cement Industry
Ambuja Cements’ investment comes at a time when infrastructure development, housing construction and commercial real estate activity are supporting demand for cement across India.
The expansion across three major regions could improve the availability of cement in growing markets and strengthen the company’s competitive position. Additional grinding units near consumption centres may also help reduce transportation costs and improve delivery efficiency.
The expansion is also significant for the construction and real estate sectors, where cement remains a key input material. However, the actual impact on cement prices and availability will depend on market demand, production costs, competition and the pace at which the new facilities become operational.
Ambuja Cements will move forward with its planned greenfield and brownfield projects as part of the Rs 14,500 crore investment programme. In the near term, the company expects to commission the Warisaliganj Grinding Unit and ramp up other recently added facilities during H2 FY27.
The company is targeting 119 MTPA capacity by March 2027, followed by a further expansion towards 155 MTPA by FY30.
The success of this strategy will depend on timely project execution, infrastructure availability, market demand and the company’s ability to achieve its targeted manufacturing and logistics cost efficiencies.
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