- 05 Aug 2024
- ICICI Securities
Ambuja announces 6 mtpa cement capacity in Bihar
AMBUJACEM - 627 Change: -3.10 (-0.49 %)News: Ambuja Cements has announced a 6 million tonnes (mtpa) cement grinding facility in Bihar with an investment of Rs 1600 crore. The project will be implemented in three phases with the first phase of 2.4 mtpa, at an initial investment of Rs 1100 crore, is targeted to be commissioned by Dec 2025. Adequate provisioning of land for future expansion is in place which will be commissioned in due course. The total capex of Rs 1600 crore will be funded through internal accruals.
Views: With this first phase of 2.4 mtpa grinding expansion, Ambuja's total capacity under execution stands at 25.4 mtpa which will take the company's total capacity to 114.4 mtpa by FY26 (from 89 mtpa at present including 14 mtpa of Penna Cements). Company targets to reach total capacity of 140 mtpa by FY28e with ~20% market share (from ~14% at present). With the strong focus on continuous capacity expansions & gaining market shares across regions, we believe that company's volume growth would remain healthy in the coming periods (better than industry's growth of 7-8%).
Impact: Positive