Ambuja Cements, an Indian manufacturer of construction materials, announced on Monday that it will invest 60 billion rupees, or roughly $723 million, in renewable power projects.
It stated in an exchange filing that the investment will be paid internally and that it aims to achieve a 1,000 megawatt (MW) capacity through solar and wind power projects in Gujarat and Rajasthan. It did not provide any information regarding the funding procedure.
The Adani Group-owned business also stated that it will add 84 MW to its current capacity by fiscal 2026 by achieving the capacity from solar and wind power projects.
According to the firm, these initiatives will raise its overall green power capacity from the current 19% to 60%.
Ambuja Cements paid 51.85 billion rupees earlier this month to acquire the majority of Sanghi Industries.
Larger competitor UltraTech Cement said last month that it would buy Kesoram Industries’ cement division in an all-stock transaction worth 53.79 billion rupees.
According to the statement, green power will also help to enable a greater supply of green cement, enabling the user industry to go green.
“We are not just aiming for a substantial increase in green power capacity but also setting the stage for a transformative shift in the cement industry,” stated Ajay Kapur, CEO of Cement Business. They help us become competitive and sustainable because they not only fit with our growth trajectory but also with the national goal of decarbonization and a greener future.
To further cut down on power costs, the corporation is also planning to increase the capacity of its Waste Heat Recovery Systems (WRS) from its present 103 MW to 397 MW over a five-year period.
The investment by Ambuja Cements also provides financial benefits for the company’s anticipated 140 MPTA increase in capacity. “The cost of power will decrease from Rs 6.46 per kWh to Rs 5.16 per kWh due to lower generation costs from green power.” The company’s ESG aims will be accelerated by a reduction of Rs 1.30 per kWh (20%), or Rs 90 PMT of cement for the anticipated capacity of 140 MTPA by FY 2028, according to the statement.
The EBITDA increased to Rs 1,350 a tonne from Rs 350 after Adani Group acquired ACC and Ambuja Cement, and the group plans to scale it up to Rs 1,400 by 2024, according to sources.
The Adani Group purchased ACC Ltd. and Ambuja Cement Ltd. last year in an effort to diversify its business sectors. With six integrated cement manufacturing plants and eight cement grinding units spread around the nation, Ambuja Cement has an annual cement capacity of 31 million tons. With 17 cement manufacturing facilities and 85 ready-mix concrete plants, ACC can produce 34.45 million tonnes of cement annually.
