Ambuja Cements will invest ₹14,500 crore, or about $1.53 billion, to increase its cement manufacturing capacity to 155 million metric tons per annum by fiscal 2030, the company said on Monday. The expansion will add capacity across Assam, Bihar, Jharkhand, Gujarat, Maharashtra and Uttar Pradesh, strengthening its presence across eastern, western and northern India.
The company currently has cement capacity of 113.5 million tons per annum and expects this to rise to 119 MTPA by March 2027. The planned expansion therefore represents a substantial increase over its existing manufacturing base and is being positioned to meet expected growth in infrastructure and housing demand.
The investment will cover new capacity across multiple regional markets, including cement plants and grinding units. The company’s stated geographic focus reflects the importance of regional manufacturing networks in cement, a bulky material whose transportation and freight costs can influence supply and distribution economics.
Ambuja’s announcement comes days after the company reported a 34.7 per cent fall in quarterly net profit. The decline was attributed to higher fuel and freight costs, which remain significant operating factors for cement manufacturers because production and distribution require substantial energy and transport inputs.
India’s cement makers have expanded capacity in recent years as companies seek to serve anticipated demand from infrastructure and housing. New plants and grinding units have allowed producers to strengthen their presence in key regional markets, while also bringing production closer to areas where construction activity is expected to grow.
For cities and construction markets, Ambuja’s plan could increase the company’s manufacturing reach in six states, although the announcement does not specify the individual capacity additions, project locations, investment schedule or commissioning dates for each facility. It also does not provide details on the number of plants or grinding units involved in the expansion.
The company’s near-term milestone is to reach 119 MTPA by March 2027, before progressing towards the longer-term target of 155 MTPA by fiscal 2030. The plan places capacity growth alongside the continuing demand for cement from India’s infrastructure and housing sectors, while the recent fall in profit highlights the cost pressures that will accompany the expansion.
