Nearly six months after it completed the acquisition of Holcim’s cement assets, the Adani group has announced plans to double capacity to 140 million tonnes (mt) by 2027-28. The projected investment is Rs 46,000 crore, which will be funded by internal accruals.
The conglomerate is the country’s second-largest cement maker with a capacity of 67.5mt. UltraTech Cement from the Aditya Birla group leads with a capacity of 120mt.
Ambuja Cement and ACC are engaged in roadshows in Singapore and Hong Kong from March 27-30.
In a presentation to investors, the companies said the expansion includes additional capacity unlocking through debottlenecking.
It is expected the expansion will result in the business generating net sales of Rs 70,000 crore by 2027-28 from an estimated Rs 29,700 crore in 2022-23.
The EBITDA (earnings before interest, taxes, depreciation and amortisation) is projected to rise to Rs 17,500 crore from an average of Rs 5,100 crore over the last three years. Similarly, the EBITDA per tonne is expected to rise from an average of Rs 1000 per tonne over the past three years to Rs 1470 per tonne.