Adani Group's Ambuja Cement Secures 24 Limestone Mines in FY24.

Ambuja Cements, a prominent firm under the Adani Group, has secured 24 new limestone mines in the fiscal year 2024, enhancing its resource base by an estimated 587 million tonnes, as detailed in the company's latest annual report. This strategic move is part of Ambuja's aggressive expansion strategy, aimed at bolstering its self-sufficiency in raw materials.

In addition to these acquisitions, Ambuja Cements also gained access to Sanghi Industries' reserves of 1 billion tonnes of limestone following its acquisition in November last year for Rs 5,185 crore. The company highlighted the significance of these wins, stressing that securing coal and limestone mines is crucial to meeting 40% of its coal requirements through mines in Dahegaon-Gowari and the existing Gare Palma coal block.

Looking ahead, the Adani Group has set ambitious targets, aiming to achieve a capacity of 140 million tonnes per annum (MTPA) by 2028. The expansion strategy includes both brownfield expansions and strategic acquisitions. Recently, the group announced the acquisition of Hyderabad-based Penna Cement for Rs 10,422 crore, a move expected to add 14 MTPA to Ambuja Cements' capacity, reaching a total of 89 MTPA.

The Penna Cement acquisition, funded entirely through cash reserves, underscores Ambuja Cements' robust financial position. According to ACL CFO Vinod Bahety, even after this significant investment, the company anticipates holding over Rs 10,000 crore in cash by the year-end, emphasizing the strategic deployment of capital to generate returns exceeding 15% in terms of Return on Capital Employed (ROCE).

Furthermore, Ambuja Cements is actively increasing its sustainability efforts by expanding its use of alternative fuels and green power. With investments exceeding Rs 10,000 crore in green power projects, the company aims to power 60% of its expanded capacity through 1 GW of solar and wind power, along with 376 MW of waste heat recovery systems by FY 2027-28. This initiative not only aligns with environmental goals but also promises compelling economic benefits.

The expansion of Ambuja Cements through mine acquisitions and strategic investments positions the Adani Group as a major player in India's cement sector, poised for substantial growth in the coming years.

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