Ambuja Cements plans ₹14,500 crore capex to add 30 MTPA capacity by FY30
Synopsis
Ambuja Cements has committed ₹14,500 crore to add 30 MTPA of new capacity — its largest single-phase expansion — targeting 155 MTPA by FY30. With new clinker plants in Assam, Maharashtra, and Gujarat, and a cost-per-tonne target of ₹4,000 by FY28, the Adani-backed company is mounting a serious challenge for leadership in India's high-growth cement markets.
Key Takeaways
Ambuja Cements announced a ₹14,500 crore growth capex programme on 2 November 2026 to add 30 MTPA of cement capacity.
Total installed capacity is targeted at 155 MTPA by FY30 , up from the current 113.5 MTPA .
New grinding capacity: 15.5 MTPA (West), 11.6 MTPA (East), 2.9 MTPA (North).
New clinker plants at Umrangso, Assam (4 MTPA), Maratha (4 MTPA), and Mundra (2.3 MTPA).
Company targets a manufacturing cost of ₹4,000 per metric tonne by FY28 .
Capacity expected to reach 119 MTPA by March 2027 ; 11 projects completed since Adani acquisition, adding 16.3 MTPA .
Ambuja Cements Limited on Monday, 2 November 2026, announced the next phase of its expansion strategy — a ₹14,500 crore growth capital expenditure programme aimed at adding 30 MTPA of cement capacity through new greenfield and brownfield projects across high-growth markets in the East, West, and North clusters. The move is expected to take the company's total installed capacity from the current 113.5 MTPA to 155 MTPA by FY30.
Scale and Scope of the Expansion
The expansion blueprint targets significant new grinding capacity additions: 15.5 MTPA in the West Cluster, 11.6 MTPA in the East Cluster, and 2.9 MTPA in the North Cluster. On the clinker side, new facilities are planned at Umrangso, Assam (4 MTPA) in the East cluster, and at Maratha (4 MTPA) and Mundra (2.3 MTPA) in the West cluster. These upstream additions are designed to support the expanded grinding footprint and tighten the clinker-to-grinding ratio across the network.
What the Company Said
Vinod Bahety, CEO – Cement Business, Adani Group, said the focus is on quality of growth and a more balanced manufacturing network. 'Our next phase of expansion is focused on quality of growth and creating a more balanced manufacturing network. By strengthening the link between clinker and grinding capacity and expanding closer to the high growth potential key markets, we are building greater flexibility into the network,' Bahety said.
He added that the programme is equally about cost leadership: 'Being closer to the market, it will also help in reducing lead distance and thereby logistics cost. In all, it will pave the journey to achieve a cost of ₹4,000 PMT by FY28.'
Near-Term Capacity Milestones
In the first half of FY27, Ambuja already added 4.6 MTPA through a 1.2 MTPA brownfield expansion at Dahej, Gujarat; a new 2.4 MTPA grinding unit at Salai Banwa, Uttar Pradesh; and a 1.0 MTPA brownfield expansion at Kalamboli, Maharashtra. The near-term pipeline includes the Bathinda GU (1.2 MTPA) in Punjab and the Jodhpur Penna IU (2 MTPA) in Rajasthan, both expected to ramp up in H2 FY27. The Warisaliganj GU (2.4 MTPA) in Bihar is also set for commissioning in H2 FY27, taking the company's total capacity to an estimated 119 MTPA by March 2027.
Progress Since Adani Acquisition
Since the Adani Group's acquisition of Ambuja, the company has completed 11 capacity projects, cumulatively adding 16.3 MTPA of cement capacity and 9.0 MTPA of clinker capacity up to 30 September 2026. Ambuja, which is part of the Adani Portfolio, currently operates across 24 integrated plants and 24 grinding units on a pan-India basis. This expansion programme represents its most ambitious single-phase capacity push to date.
Strategic Rationale
The programme aligns with India's sustained infrastructure and housing demand cycle, particularly in the East — a region where cement consumption growth has outpaced the national average. By concentrating new capacity closer to consumption centres, Ambuja aims to reduce lead distances, cut logistics costs, and protect margins in a market increasingly sensitive to freight efficiencies. This comes amid intensifying competition from UltraTech Cement and other large players also racing to lock in capacity ahead of India's infrastructure decade.
Point of View
500 crore programme is less a capex announcement and more a land-grab in India's cement race — Ambuja is clearly betting that the infrastructure and housing boom has years left to run, and that proximity to consumption centres will be the decisive cost moat. The East cluster focus is particularly telling: it is the one region where organised players are still fighting for dominance, and Ambuja's Umrangso clinker plant in Assam could anchor a commanding position there. The ₹4,000 PMT cost target by FY28 is ambitious but grounded — logistics cost reduction from shorter lead distances is measurable. The real variable is execution pace; Ambuja has completed 11 projects since acquisition, a credible track record, but scaling three clusters simultaneously while managing clinker commissioning timelines is a different order of complexity.
NationPress
2 Nov 2026
Frequently Asked Questions
What is Ambuja Cements' ₹14,500 crore expansion programme?
It is a growth capex programme announced on 2 November 2026 to add 30 MTPA of new cement capacity through greenfield and brownfield projects across East, West, and North India, targeting a total capacity of 155 MTPA by FY30. The programme includes both new grinding units and new clinker plants.
What will Ambuja Cements' total capacity be after the expansion?
Ambuja Cements' total installed capacity is expected to reach 155 MTPA by FY30, up from the current 113.5 MTPA. As a near-term milestone, capacity is projected to hit 119 MTPA by March 2027.
Where are the new Ambuja Cements plants being built?
New clinker plants are planned at Umrangso in Assam (4 MTPA), Maratha in Maharashtra (4 MTPA), and Mundra in Gujarat (2.3 MTPA). New grinding units are being added across West, East, and North clusters, including facilities in Bihar, Punjab, and Rajasthan.
What is Ambuja Cements' manufacturing cost target?
The company is targeting a manufacturing cost of ₹4,000 per metric tonne (PMT) by FY28. According to CEO Vinod Bahety, locating capacity closer to key markets will reduce lead distances and logistics costs, driving the company toward this cost goal.
How much capacity has Ambuja Cements added since the Adani acquisition?
Since the Adani Group acquired Ambuja Cements, the company has completed 11 capacity projects, adding 16.3 MTPA of cement capacity and 9.0 MTPA of clinker capacity up to 30 September 2026.
