What is Ambuja Cements' capacity target?

Ambuja Cements aims to achieve a capacity of 155 million tonnes per annum (mtpa) by the end of fiscal year 2028.

Is Adani Group changing its cement expansion strategy?

Yes, the Adani Group, through Ambuja Cements, is signaling a shift to prioritize profitability and may delay its capacity expansion targets.

Why are cement makers cooling their expansion race?

The expansion race led to industry-wide overcapacity and margin erosion, prompting companies like Ambuja Cements to focus on utilizing existing capacity more efficiently and prioritizing profitability.

Home / Business and Economy / Adani Cement Cools Expansion Race for Profitability

Adani Cement Cools Expansion Race for Profitability

15 Mar

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Summary

Adani Group hints at prioritizing cement sector profitability.
Ambuja Cements may delay 2028 capacity target by two years.
Company seeks higher utilization of existing cement capacity.

Adani Cement Cools Expansion Race for Profitability

India's leading cement manufacturers may be easing their aggressive expansion efforts, a trend that had previously resulted in industry-wide overcapacity and eroded profit margins. The Adani Group, which acquired Ambuja Cements in September 2022, has suggested a new strategy focused on profitability once its current expansion plans are realized.

Ambuja Cements, currently India's second-largest cement producer with 109 million tonnes per annum (mtpa) capacity, informed analysts that it is open to delaying its fiscal year 2028 target of 155 mtpa. This potential delay of a couple of years aims to enhance the utilization of its existing production capacity, signaling a strategic pivot towards margin improvement.

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