Ambuja Cements Forecasts Growth, Prioritizes Sustainability

Ajay Kapur, CEO of Ambuja Cements, anticipates a 4-5% growth in cement demand in FY25 due to infrastructure and housing needs. The company is investing in green energy, aiming for a 60% share in its power mix. Strategic expansions include the acquisition of Orient Cements, boosting capacity significantly.

Ajay Kapur, the Director and CEO of Ambuja Cements, has expressed a positive outlook for the company, predicting a 4-5% increase in cement demand for the fiscal year 2025. This anticipated growth is largely attributed to the surge in infrastructure activities and continued requirements from the housing and commercial sectors.

Kapur highlighted that strong infrastructure demand, coupled with the ongoing needs from the housing and commercial segments, will likely propel cement demand in the latter half of FY 2025. He pointed to governmental initiatives such as the Pradhan Mantri Awas Yojana Urban Housing II, with a significant allocation of Rs 11 lakh crores, and the focus on infrastructural development as bolstering the cement sector's growth. The strategic investment in roads, railways, and urban and commercial amenities is expected to drive this robust growth.

Aligning with its sustainable growth strategy, Ambuja Cements has set an ambitious agenda to ramp up its green power capacity, aiming for green energy to constitute 60% of its total power mix. Kapur announced a Rs. 10,000 crore investment in solar and wind power projects totaling 1GW and plans to enhance waste heat recovery systems and alternative fuels.

By the close of FY25, the company's waste heat recovery systems are expected to reach 218MW, yielding substantial economic benefits as Ambuja scales up to 140 million tons per annum. Emphasis on strategic investments and capacity expansion is crucial for the company's market reinforcement. The recent acquisition of Orient Cements will see Ambuja's production capacity soar to 97 million tons per annum.

Kapur emphasized the significance of strategic investments post the Orient Cements acquisition, projecting increased cement capacity to 97 million tons annually. These acquisitions promote economies of scale, efficiency, resource optimization, and sustainability. The transaction further strengthens Ambuja's presence in key markets and elevates its national market share by 2% with enhanced marine logistics support.

(With inputs from agencies.)