New Delhi: Gautam Adani-led Adani Group, which owns Ambuja Cements and ACC Ltd, is aiming to capture about one-fifth of the Indian cement market by FY28.
An investor presentation shared by Ambuja Cements said the Adani Cement business will implement its accelerated capital expenditure program through internal accruals and the business "will remain debt free".
Additionally, Adani Cement also accelerates the pace of capacity expansion and expects an accelerated growth rate of 16 per cent to reach 140 MTP (million tonnes per annum) by FY2028.
"Adani Cement aims to increase its market share from the current 1 per cent to 20 per cent by FY28," the Adani group company said.
At present, Adani Cement is the second leading company in the sector after UltraTech Cements, an Aditya Birla Group company.Ambuja, along with its subsidiaries ACC Limited, has a capacity to produce 77.4 million tonnes of cement annually from 18 integrated cement manufacturing plants and 1 cement grinding units across the country. It had recently acquired Sangh Industries Limited.
The group has some supporters to increase the capacity and already has LAN and some are in advanced stage of acquisition.
"It has cumulative reserves of 8,000 million metric tonnes of limestone, which is a key raw material for the cement industry," Adani Cements said.
Moreover, under the long-term arrangement it has 40 per cent of its fly ash requirements, which will increase to more than 50 per cent by 2028.Ambuja further said it has "better enterprise risk management" and 65 per cent of the total cost of cement is a synergy with a group or where the group is the market leader.
“Accelerated growth and cost leadership supported by group synergies is one of the most important differentiating points for Adani Cement,” it said.
Moreover, Ambuja remains debt-free with total assets of Rs 43,000 crore (about US$5.2 billion) and cash and cash equivalents of Rs 8,59 crore (about US$1.04 billion) as of December 2023.
In the Indian cement industry, Adani Group said it also expects it to grow at a CAGR of 7 to 8 percent.
“Given the opportunities in the building materials industry, growth will further increase,” it said.,
India is currently the second largest producer of cement with an installed capacity of 550 million tonnes, which is 8 percent of the total global capacity of 6,875 million tonnes.
"Demand is expected to grow at a rate of 8-9 per cent over the next 5 years, the higher the capacity growth rate, the better capacity utilization is expected," it said. In September 2022, Adani Group acquired controlling stake in Ambuja Cement from Swiss firm Holcim for cash consideration of US$6.4 billion (about Rs 51,000 crore).
An investor presentation shared by Ambuja Cements said the Adani Cement business will implement its accelerated capital expenditure program through internal accruals and the business "will remain debt free".
Additionally, Adani Cement also accelerates the pace of capacity expansion and expects an accelerated growth rate of 16 per cent to reach 140 MTP (million tonnes per annum) by FY2028.
"Adani Cement aims to increase its market share from the current 1 per cent to 20 per cent by FY28," the Adani group company said.
At present, Adani Cement is the second leading company in the sector after UltraTech Cements, an Aditya Birla Group company.Ambuja, along with its subsidiaries ACC Limited, has a capacity to produce 77.4 million tonnes of cement annually from 18 integrated cement manufacturing plants and 1 cement grinding units across the country. It had recently acquired Sangh Industries Limited.
The group has some supporters to increase the capacity and already has LAN and some are in advanced stage of acquisition.
"It has cumulative reserves of 8,000 million metric tonnes of limestone, which is a key raw material for the cement industry," Adani Cements said.
Moreover, under the long-term arrangement it has 40 per cent of its fly ash requirements, which will increase to more than 50 per cent by 2028.Ambuja further said it has "better enterprise risk management" and 65 per cent of the total cost of cement is a synergy with a group or where the group is the market leader.
“Accelerated growth and cost leadership supported by group synergies is one of the most important differentiating points for Adani Cement,” it said.
Moreover, Ambuja remains debt-free with total assets of Rs 43,000 crore (about US$5.2 billion) and cash and cash equivalents of Rs 8,59 crore (about US$1.04 billion) as of December 2023.
In the Indian cement industry, Adani Group said it also expects it to grow at a CAGR of 7 to 8 percent.
“Given the opportunities in the building materials industry, growth will further increase,” it said.,
India is currently the second largest producer of cement with an installed capacity of 550 million tonnes, which is 8 percent of the total global capacity of 6,875 million tonnes.
"Demand is expected to grow at a rate of 8-9 per cent over the next 5 years, the higher the capacity growth rate, the better capacity utilization is expected," it said. In September 2022, Adani Group acquired controlling stake in Ambuja Cement from Swiss firm Holcim for cash consideration of US$6.4 billion (about Rs 51,000 crore).
