Ambuja Cement to Invest Rs. 1,600 Cr. in Bihar Greenfield Grinding Unit
Ambuja Cement Ltd., part of the Adani Group, has announced an investment of Rs. 1,600 crore in Mosama village of Bihar’s Warisaliganj Tehsil to set up a greenfield cement grinding unit.
In its stock filing dated 3rd August 2024, the company mentioned that this is its ‘first venture’ in Bihar, and is ‘the largest investment in the state by a cement industry player’.
Warsaliganj Grinding Unit to have 6 MMTPA Capacity
Ambuja Cement’s Warsaligunj grinding unit will have an annual capacity of 6 Million Metric Tonne Per Annum (MMTPA), and will be a ‘standalone facility’. Therefore, this plant will be purely a grinding unit which will only grind and process cement clinker, and will not have any clinker production lines.
The site for this cement grinding unit is situated 1 Km from Warsaliganj Railway Station. The site also has road connectivity, and is situated 500 m from SH-83.
Grinding Unit to Come up in 3 Phases, First Phase to be Commissioned by Dec 2025
Ambuja Cements specified in its filing that its Warsaliganj grinding unit will be developed in three phases, and the first phase is scheduled to be commissioned by December 2025. Post completion of phase 1, the unit will have a grinding capacity of 2.4 MMTPA. Ambuja Cement will invest a sum of Rs. 1,100 crore for phase 1 of this project.
Ambuja Cement did not specify the timeline for the remaining two phases of the grinding unit. The company’s filing mentioned, “Adequate provisioning of land for future expansion is in place which will be commissioned in due course at much lower capex”.
About sourcing the funds for this grinding unit, Ambuja Cement clarified that this grinding unit will be financed entirely by the company’s internal accruals.
Commenting on this upcoming cement grinding unit, Mr. Pranav Adani, Managing Director (Agro, Oil & Gas) and Director of Adani Enterprises, said, “The cement industry is witnessing healthy volumes due to the government’s infrastructure thrust, and Ambuja Cements is well-positioned to support sustainable infrastructure development in the country”.
Warsaliganj Unit to Create Total of 1,250 Jobs in Bihar
Ambuja Cement expects Warsaliganj grinding unit to create 250 direct employment opportunities and 1,000 indirect jobs in Bihar. Therefore, a total of about 1,250 work opportunities will be generated as a result of this project.
Adani Group Targets 140 MMTPA Cement Capacity by FY-28, Key Projects Underway
During Ambuja Cement’s earnings call for its Q1 FY-25 financials, Mr. Ajay Kapur, CEO of Adani Group’s Cement Business said that progress is being made towards achieving Adani Group’s Cement production capacity target of 140 MMTPA by FY-28. As of now, Adani Group has a cement production capacity of 78.9 MMTPA.
Some major projects that the Adani Group expects to commission by end of FY-25 include a 4 MMTPA clinker unit in Bhatapara, Chhattisgarh, and grinding units in West Bengal’s Sankrail and Farakka, and Sindri in Jharkhand. Apart from this, Adani Group expects commissioning of its Salai Banwa (UP) cement grinding unit during Q1 of FY-26. Brownfield expansion of its Bathinda and Marwar Mundwa grinding units is expected to be complete by Q2 of FY-26. “With commissioning of these projects, we shall be reaching cement capacity of 100 million tons by Quarter 2 FY26”, said Mr. Kapur.
About Ambuja Cements Ltd.: Ambuja Cements Ltd. became a part of the Adani Group in September 2022. A major Indian manufacturer of cement, the company reported a revenue of Rs. 33,159.64 crore for FY-24.
