Daijiworld Media Network – Mumbai
Mumbai, Nov 4: The race for dominance in India’s cement sector is heating up as the Adani Group on Monday raised its capacity expansion target by over 10%, just weeks after market leader UltraTech Cement Ltd announced a similar increase.
Billionaire Gautam Adani’s cement venture, which entered the industry three years ago by acquiring Holcim AG’s India operations—Ambuja Cements and ACC Ltd—has rapidly grown into the country’s second-largest cement producer. The group has since expanded its footprint by acquiring smaller players like Sanghi Industries, Penna Cement, and Orient Cement.
Currently capable of producing 107 million tonnes per annum (mtpa), Adani’s cement arm plans to boost output by another 15 mtpa by FY28, reaching 155 mtpa. This expansion will primarily come through debottlenecking—optimizing existing facilities for higher production—rather than setting up new plants, ensuring lower costs.
On October 18, UltraTech Cement, India’s largest cement maker with 167 mtpa capacity, had announced plans to reach 240 mtpa by FY28 by adding 22.8 mtpa. It also aims to hit 200 mtpa by FY26, a year ahead of its original timeline. Since Adani’s entry into the sector, UltraTech has expanded aggressively, adding 51 mtpa through acquisitions, including India Cements Ltd and Kesoram Industries Ltd.
Together, the two industry giants have added nearly 90 mtpa of capacity in three years — more than Shree Cement’s total capacity of 56 mtpa. At their current pace, Adani and UltraTech are on track to control over half of India’s total cement manufacturing capacity of 688 mtpa.
“This announcement can be seen as a strategic move by Adani to close the competitive gap with UltraTech, signalling its intent to match the rival’s expansion pace,” said Satyadeep Jain, lead analyst for cement, metals, and mining at Ambit Capital.
Ambuja Cements CEO Vinod Bahety said the expansion would not entail major capital spending since it involves optimization. “With this debottlenecking exercise, we aim to double our business size since acquiring Ambuja and ACC in 2022,” Bahety said.
Ambuja Cements reported a sharp rise in its September quarter standalone profit, which more than doubled to Rs 1,387.55 crore from Rs 500.66 crore last year, largely due to reversals of earlier provisions following favourable court rulings and tax assessments. Revenue from operations grew 26.2% year-on-year to Rs 5,139.48 crore, though it dipped 7% sequentially due to the seasonal slowdown during the monsoon quarter.
Analyst Satyadeep Jain noted that Adani’s cement arm is targeting a market share of 22% by FY28, up from the current 16.6%. “Such aggressive growth may put pressure on pricing in the sector,” he cautioned, adding that the group’s cost-saving targets of Rs 400 per tonne this year and up to Rs 800 per tonne over the next three years “look ambitious.”
CEO Bahety said the company is identifying 13 plant locations for debottlenecking through upgrades such as adding roller presses to complement ball mills, thereby improving grinding efficiency. “These are low-hanging fruits for immediate gains,” he said, hinting at further debottlenecking studies for clinker capacity.
He added that improved economic sentiment and strong investment activity in both public and private sectors “augur well for the cement industry.” The company also plans to install 13 blenders across its plants to enhance product mix and increase the share of premium cement.
Ambuja Cements reaffirmed its annual demand growth forecast of 7–8%, supported by GST rate reduction, infrastructure investments, and private sector spending. Demand in Q2FY26 grew moderately by 4% year-on-year.
On the NSE, Ambuja Cements shares rose 2.36% to Rs 578.75 on Monday, outperforming the Nifty index, which gained 0.16%. The company announced its quarterly results during market hours.