Ambuja Cements Retains 119 Million Tonne Capacity Target, Focuses on Improving Plant Utilisation

Ambuja Cements, part of the Adani Group, has reiterated its commitment to achieving a cement production capacity of 119 million tonnes by the end of the current financial year, while adopting a more measured approach towards future capacity additions.

The company has indicated that its immediate priority is to improve utilisation levels across its existing manufacturing network and stabilise recently commissioned facilities before pursuing large-scale expansion plans. This strategy comes as the company continues to integrate multiple acquisitions completed over the last few years.

According to Vinod Bahety, Chief Executive Officer of Ambuja Cements, capacity expansion will continue in a calibrated manner. The company achieved around 70 percent capacity utilisation during FY26 and aims to improve operational efficiency across its production base before adding significant new capacities.

Ambuja Cements has witnessed rapid growth since the Adani Group acquired controlling stakes in Ambuja Cements and ACC in 2022. Since then, the group has expanded its footprint through acquisitions including Sanghi Cement, Penna Cement and Orient Cement, significantly strengthening its presence across key markets in India.

Despite achieving record revenue and profit after tax during FY26, the company faced pressure on operating margins due to rising input costs. Higher fuel, logistics and energy expenses impacted earnings, reflecting broader challenges faced by the cement industry. The company noted that geopolitical developments and rising crude oil prices contributed to increased operational costs during the year.

Ambuja Cements recently completed the integration of Sanghi Industries and Penna Cement and is currently working towards the amalgamation of ACC and Orient Cement. The company believes these integrations will create a more efficient operating structure and enhance decision-making capabilities closer to key markets.

While Ambuja Cements had earlier outlined ambitious expansion plans to reach 140 million tonnes and later 155 million tonnes of capacity, the company is now prioritising operational stability, efficiency and utilisation. Industry observers view this approach as a strategic move that could help strengthen profitability while supporting sustainable long-term growth in India’s rapidly expanding cement market.