Adani Group-owned Ambuja Cements Ltd said on Friday it would expand its blended cement production capacity by 14 million metric tonnes, as part of a previously announced plan to double capacity over five years.
Ambuja placed orders to expand clinker capacity by 8 million tonnes at two units that would operate on green power or renewable energy, and help increase production of blended green cement by 14 million tonnes, it said in a stock exchange filing.
The projects are expected to be commissioned in two years and will funded using internal accruals, it added.
“These brownfield expansion projects are part of our strategy to double our production capacity over the next five years from the current capacity of 67.5 million tonnes a year,” Ajay Kapur, chief executive officer of Ambuja’s cement business, said.
Ambuja, along with its subsidiary ACC Ltd, has a capacity to produce 67.5 million tonnes with fourteen cement manufacturing plants and sixteen cement grinding units across India.
Meanwhile, rival UltraTech Cement said last month its expansion program is progressing as scheduled, with the next phase expected to see a growth of 22.6 million tonnes a year, while commercial production from its new capacities is expected to go on stream in a phased manner by 2025 or 2026 financial year.
Shares fall
Shares of Adani Transmission and Adani Total Gas ended with cuts of up to 4.33 per cent after global index provider MSCI announced that these two companies will move out of its India index with effect from May 31. They will also not be eligible for inclusion in MSCI global market indexes.
According to estimates by Nuvama Alternative & Quantitative Research, the exit of Adani Transmission and Adani Tota Gas is likely to trigger outflows of $201 million and $186 million, respectively.
Shares of Adani Total Gas tumbled by 4.33 per cent of Rs 37 to close at Rs 818.35 in the BSE.
During intra-day trades, the counter hit the lowest circuit limit of 5 per cent of Rs 812.60. The Adani Transmission scrip settled at Rs 885-a drop of 3.49 per cent over its last close after falling 5 per cent to a day’s low of Rs 871.15.
Reuters; with inputs from our Mumbai bureau
