Cementing the Future—Ambuja Crosses 100 MTPA with Bengal Expansion

Image Source: The Hindu Business Line

Ambuja Cements Ltd (NSE: ABUJ.NS) has started a 2.4 million tonnes per annum (MTPA) brownfield expansion of its Sankrail plant in West Bengal, increasing its total cement manufacturing capacity to 102.95 MTPA. This is a significant milestone in the company's path to becoming one of the largest and cost-effective cement producers in India.

1. Expansion Highlights

The new unit is a part of Ambuja's strategy to establish its presence in eastern India, where demand for residential housing and infrastructure is shooting upwards at a fast rate.
The Sankrail plant is now being fortified with enhanced clinker grinding and dispatch capacities, which will improve turnaround time and logistics efficiency.
The expansion is a part of the company's long-term strategy of reaching 140 MTPA capacity by 2028, according to parent Adani Group plans.

2. Strategic Significance

With this expansion, Ambuja becomes part of a select group of Indian cement companies to exceed the 100 MTPA milestone, reinforcing its position in both retail and institutional segments.
The expansion will most probably reduce lead time and freight cost in eastern markets, improving margins and service levels.
It also aligns with the sustainability targets of the company, with energy-efficient operations and reduced carbon footprint per tonne of cement produced.

Sources: Business Standard, Moneycontrol, Economic Times