Ambuja Cements Ltd (ACL) is investing nearly ₹1,600 crore to set up a cement grinding unit in Bihar.

The announcement comes less than a week from UltraTech Cement acquiring a majority stake in India Cements, which has a total capacity of 14.45 million tonnes of grey cement.

ACL’s fresh investment is yet another indication of the intensifying rivalry between Gautam Adani and Kumar Mangalam Birla to boost their presence in India’s cement sector.

ACL said this would be its first venture in Bihar, and the largest investment in the state by a cement industry player. The cement grinding unit will come up at Warisaliganj in Nawada district and it will have an overall capacity of 6 million tonnes.

The project will be implemented in three phases with the first phase of 2.4 million tonnes coming up at an investment of ₹1,100 crore. This is targeted to be commissioned by December 2025. ACL added that there is adequate availability of land for future expansion and this will be commissioned in due course at a much lower capex.

According to ACL, the proposed unit will be well-connected by road and rail, with Warisaliganj railway station 1 km away and SH-83 just 500 metres from the site. The project is expected to meet the growing infrastructure needs of Bihar, aligning with priorities outlined in the recent Union Budget.

In the 2024-25 Union Budget, the Narendra Modi-led government unveiled major projects for Bihar as it proposed a total outlay of over ₹60,000 crore. These included funding for three expressways, a power plant, heritage corridors and new airports and sports infrastructure.

Ambuja Cements disclosed that its upcoming project will contribute around ₹250 crore annually to the state’s fiscal revenue and create 250 direct jobs and 1,000 indirect jobs.

Bihar Industrial Area Development Authority, the state agency, has already allotted 67.90 acres of land for the project for which environmental clearance has been obtained for work on the site.

“We look forward to collaborating with the state government, authorities, and local communities on this and future projects. The state government’s support in fast tracking and provisioning of all permits has made this investment possible in short time,” Pranav Adani, managing director (agro, oil & gas) and director, Adani Enterprises said.