Ambuja Cement - Walking The Talk: ICICI Securities

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ICICI Securities Report

Keeping up with its commitment (given during FY23 earning call) of placing equipment orders for capacity expansion soon, Ambuja Cement Ltd. on May 12, 2023 formally announced the placing of orders for eight million tonnes per annum clinker expansion.

The capex, which will enable cement production of 14 mtpa, is scheduled to commission in 24 months and will be funded entirely through internal accruals.

The planned capex is a part of Ambuja Cements’ (consolidated) undeterred vision to double production capacity in five years. This is a positive development for Ambuja Cements as it offers growth visibility and confirms company’s aspiration to pursue aggressive growth.

However, for cement sector, we maintain our view that the start of capex cycle by Ambuja Cements can stoke race for capacity share among incumbents.

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ICICI Securities Ambuja Cement Company Update.pdf

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Also Read: UltraTech Cement - Volume Growth Robust; Gaining Market Share: Motilal Oswal

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