Adani Cement aims to increase its market share from 14% to 20% by FY28 through an internal accruals-driven capex program. Adani Cement’s capacity is expected to rise at an accelerated rate of 16% to 140 million tonnes per annum by 2028, according to an investor presentation filed with NSE by Ambuja Cements.
The company expects cement demand from the infrastructure segment to grow from 24% – 25% in FY23 to 25% – 29% in FY28. It believes infrastructure demand will be backed by the development of new economic corridors, a strong banking industry, and the government’s National Infrastructure Pipeline.
Adani Cement plans to ramp up its capabilities by sorting out the supply and availability of its key requirements, such as fly ash and limestone. It has secured 40% of its fly ash requirements under a long-term arrangement, which will be further increased to more than 50% by 2028. It has an aggregate of about 8,000 million tonnes of limestone reserve in possession at nil to nominal premium.
Adani Cements said it remains debt-free with a net worth of ₹43,000 crore. It has cash and cash equivalents of ₹8,591 crore as of December 31, 2024.
In the next 5 years, demand in the Indian cement industry is expected to grow by 8% – 9%. The Adani Group owns Ambuja Cements and its unit ACC Ltd, and it counts Aditya Birla Group’s Ultratech Cement as its peer.
Shares of Ambuja Cement were trading 0.69% higher at ₹613.05 on Monday, they pared intraday gains to trade 0.04% higher at ₹609.1 on NSE. The stock touched its 52-week high on April 4, 2024, at ₹640.80 and recorded its 52-week low of ₹373.35 on April 24, 2023. Meanwhile, shares of ACC Limited were trading 0.46% lower on Monday at ₹2,457.05 on NSE.