Mumbai: Adani Group stocks witnessed strong buying interest after Ambuja Cements announced a fresh expansion programme involving an investment of around Rs 14,500 crore to increase its cement manufacturing capacity to 155 million tonnes per annum (MTPA) by FY30.

Ambuja Cements led the rally, with its shares rising as much as 5.27% to Rs 366.40 apiece. The announcement also lifted other Adani Group companies, including Adani Enterprises, Adani Power, Adani Green Energy and Adani Total Gas. ACC Ltd, another major cement company in the group, gained up to 4%.

The proposed expansion will add nearly 30 MTPA of cement capacity through a combination of greenfield and brownfield projects across eastern, western and northern India. The company said the investment would strengthen its manufacturing network in high-growth markets, improve supply chain efficiency and bring production facilities closer to consumption centres.

The announcement reinforced the group’s focus on expanding its cement business, which has become an important part of its broader infrastructure and building materials strategy.

Adani Group stocks rise after expansion announcement

Ambuja Cements was among the leading gainers in the Adani Group pack after the company outlined its next phase of capacity expansion.

The stock climbed to an intraday high of Rs 366.40, marking a gain of 5.27%. ACC Ltd followed with an increase of as much as 4%, touching Rs 1,174.90.

Adani Power Ltd also recorded gains, rising 3.34% to reach an intraday high of Rs 195.31. Shares of Adani Enterprises Ltd, Adani Green Energy Ltd and Adani Total Gas Ltd traded up to 3.14% higher during the session.

The broad-based movement indicated that investors were responding positively to the expansion announcement and its potential implications for the Adani Group’s cement and infrastructure businesses.

However, the share price movements represent intraday highs reported in the source figures and should not be interpreted as closing prices. Stock prices can change during trading sessions in response to market conditions and company-specific developments.

Ambuja Cements plans Rs 14,500 crore expansion

Ambuja Cements said it had finalised its next phase of growth through a combination of greenfield and brownfield projects. The proposed programme involves an investment of approximately Rs 14,500 crore and is expected to add nearly 30 MTPA of cement capacity by FY30.

The expansion will increase the company’s total cement manufacturing capacity from the existing 113.5 MTPA to 155 MTPA.

The planned additions are spread across three major regions:

  • Western India: Around 15.5 MTPA of grinding capacity.
  • Eastern India: Around 11.6 MTPA of grinding capacity.
  • Northern India: Around 2.9 MTPA of grinding capacity.

The projects will cover Assam, Bihar, Jharkhand, Gujarat, Maharashtra and Uttar Pradesh. The company also plans to add clinker capacity in Assam and Gujarat to support the expanded manufacturing network.

The combination of clinker and grinding capacity is important for cement production. Clinker is a key intermediate material used in manufacturing cement, while grinding facilities process it into the finished product. Aligning the two capacities can help companies improve production planning and distribution across different markets.

Ambuja’s expansion plan is intended to create a stronger manufacturing presence in regions where the company expects demand for cement to grow. The projects will also increase its ability to supply customers from facilities located closer to consumption centres.

Focus on logistics and production costs

Apart from increasing manufacturing capacity, Ambuja Cements has identified supply chain efficiency and cost reduction as key objectives of the expansion.

By adding facilities across western, eastern and northern India, the company expects to improve the movement of clinker and finished cement across its network. Locating production closer to demand centres could help reduce transportation distances and associated logistics expenses.

The company also expects the new projects, together with debottlenecking initiatives at existing facilities, to support lower production costs.

Ambuja has set a target of bringing its cost to Rs 4,000 per metric tonne by FY28. The expansion programme is expected to contribute towards this objective by improving operational efficiency and strengthening the connection between clinker production and grinding capacity.

Vinod Bahety, CEO – Cement Business, Adani Group, said the company was building greater flexibility into its manufacturing network by strengthening the link between clinker and grinding capacity and expanding closer to key growth markets.

He added that the programme would improve the company’s competitiveness while enhancing its market reach.

The cost target will be an important measure of the effectiveness of the expansion. The company’s ability to achieve it will depend on project execution, capacity utilisation, energy expenses, logistics and other operating costs.

Ambuja’s existing capacity and FY27 expansion pipeline

The latest announcement builds on capacity additions completed during the first half of FY27.

Ambuja Cements commissioned 4.6 MTPA of additional capacity during H1 FY27 through projects in Gujarat, Uttar Pradesh and Maharashtra. These additions took its overall cement manufacturing capacity to 113.5 MTPA.

The company is also expecting another 5.6 MTPA to be commissioned or ramped up during the second half of FY27.

If these additions proceed as planned, Ambuja’s total cement capacity is expected to reach 119 MTPA by March 2027.

This planned increase would provide a further step towards the company’s longer-term target of 155 MTPA by FY30. The latest Rs 14,500-crore programme represents the next major phase of its capacity-building strategy.

The company will need to execute projects across multiple states while ensuring that the required clinker capacity, grinding facilities and supporting infrastructure are available. The pace of commissioning and the ability to ramp up new plants will therefore be important in determining how quickly the planned capacity becomes operational.

What the expansion means for the Adani Group’s cement business

The proposed investment highlights the Adani Group’s continued focus on strengthening its position in the cement sector. Ambuja Cements’ capacity expansion, along with its wider manufacturing network, is expected to improve its presence in several important regional markets.

The planned additions across Assam, Bihar, Jharkhand, Gujarat, Maharashtra and Uttar Pradesh will expand the company’s geographical reach. The focus on clinker capacity in Assam and Gujarat is also intended to support the increased grinding capacity and improve the balance of its production network.

For the cement industry, manufacturing capacity alone does not determine competitiveness. Companies also need efficient logistics, reliable raw material supplies, energy management and strong distribution networks. Ambuja’s stated focus on reducing production costs suggests that the latest programme is aimed at improving both scale and operational efficiency.

The company’s target of reaching 155 MTPA by FY30 would represent a substantial increase from its current capacity of 113.5 MTPA. Its near-term progress will depend on the commissioning of the projects planned for the second half of FY27 and the execution of the larger expansion programme.

Investor focus shifts to project execution

Ambuja Cements’ announcement triggered a rally across several Adani Group stocks, with the cement maker recording the strongest gains among the shares highlighted in the market update.

Investors will now be watching how the company progresses with the proposed projects, whether it meets its capacity addition timelines and how effectively the new facilities contribute to lower production and logistics costs.

The expansion also creates an opportunity for Ambuja to strengthen its presence in regions with growing cement demand. However, the benefits will depend on timely execution, capacity utilisation and the company’s ability to achieve its cost targets.

Overall, the Rs 14,500-crore programme marks a major step in Ambuja Cements’ plan to increase capacity to 155 MTPA by FY30. The market’s positive reaction reflected expectations around the company’s growth plans, while the next important milestone will be the conversion of announced investments into operational capacity and improved profitability.