In terms of expansion, Ambuja Cements’ focus remains on removing bottlenecks in existing capacities, the note said. It is committed to doubling grinding capacity to 140 mnt—ACC Ltd. and Ambuja Cements combined—over a five-year period. More details will be provided on this by the next quarter.
According to the note, the company’s capex plans include investment in various cost-efficient projects, including waste heat recovery, alternative fuel and raw material. It predicts that the share of alternate fuel in the overall fuel mix should increase to 30% by 2027.
Ambuja Cements’ vision is to become the “lowest cost-to-serve” company and it is looking for opportunities in raw materials, fuel and logistics, it said.
“The share of direct sales is increasing (up to 50% from 44% last quarter) and the share of rail transport rose,” the report said.
The management highlighted that it would also explore coastal transportation opportunities in the future, leveraging the group’s port business.
