Ambuja Cements to Invest Rs 6,000 Crore in 1,000 MW Renewable Power Projects by FY26

• ByStartupStory     |    December 18, 2023

Adani Group-owned Ambuja Cements Ltd has announced a significant investment of Rs 6,000 crore in renewable power projects, targeting a capacity of 1,000 MW by the financial year 2025-26. The transformative initiative will be funded through internal accruals and includes a diverse portfolio of solar and wind power projects strategically located across Gujarat and Rajasthan. The lineup comprises a 600 MW solar power project, a 150 MW wind power project in Gujarat, and a 250 MW solar power project in Rajasthan. Ambuja Cements aims to achieve this by FY26, in addition to its existing 84 MW of solar and wind power.

Ambuja Cements is in an expansion mode through organic and inorganic routes, aiming for a production capacity of 140 MTPA (million tonnes per annum). The company expects to use 60% green power share in its total energy consumption, leading to a lower cost of generation. The reduction in power costs from Rs 6.46 per kWh to Rs 5.16 per kWh is anticipated to result in a significant saving of Rs 90 per metric ton of cement by FY 2028.

Additionally, Ambuja Cements is enhancing its Waste Heat Recovery Systems capacity from the current 103 MW to 397 MW over the next five years, further reducing power costs. The company envisions achieving the leading share of green power among its peers, reaching 60% for the planned capacity of 140 MTPA, compared to the current 19%.

Ajay Kapur, CEO at Adani Group Cement Business, emphasized that this strategic investment reaffirms their commitment to sustainable practices and aligns with national objectives of de-carbonization and a greener future. The move not only supports Adani Cement’s growth trajectory but also contributes to making the industry more competitive and sustainable.

For the financial year ending March 31, 2023, Ambuja Cements reported a revenue from operations amounting to Rs 38,937 crore.

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