Ambuja Cements Embarks on INR 6,000 Crore Investment Spree in Green Power Ventures

Ambuja Cements Embarks on INR 6,000 Crore Investment Spree in Green Power Ventures

Written by Sanjay Kumar

Ambuja Cements, a prominent player in the cement and building materials sector under the Adani Group, has unveiled ambitious plans to invest a substantial ₹6,000 crore in renewable power projects, with a focused goal of achieving a capacity of 1,000 MW. This strategic move marks a significant commitment to sustainable practices and aligns with the growing global emphasis on green energy solutions.

The extensive investment portfolio comprises a well-thought-out mix of solar and wind power projects strategically positioned in key locations within Gujarat and Rajasthan. Among these projects are a substantial 600 MW Solar Power initiative and a commendable 150 MW Wind Power venture in Gujarat, along with a sizable 250 MW Solar Power endeavor in Rajasthan. These details were disclosed by Ambuja Cements in a regulatory filing on Monday (December 18).

The company has set an ambitious timeline to achieve its targets, aiming for 200 MW by March 2024 and the full 1,000 MW capacity by fiscal year 2026. This endeavor will supplement the existing 84 MW of Solar & Wind Power, enhancing the company’s overall renewable energy footprint.

An intriguing aspect of this investment is the expected reduction in power costs. With the transition to green power, the cost of generation is projected to decrease from ₹6.46 per kWh to ₹5.16 per kWh. This represents a substantial 20% reduction, equivalent to ₹1.30 per kWh. Notably, this reduction will translate into a significant cost advantage of ₹90 per metric ton of cement for the targeted capacity of 140 million metric tons per annum by fiscal year 2028. This move not only aligns with Ambuja Cements’ commitment to Environmental, Social, and Governance (ESG) targets but also positions the company strategically in a more sustainable and cost-efficient manner.

Ajay Kapur, the CEO of the Cement Business within the Adani Group, expressed confidence in the accelerated realization of these goals. He highlighted the synergies within the group, anticipating additional benefits from the strategic adjacencies. Kapur emphasized that all necessary approvals are in place, underlining the company’s commitment to surpassing its ESG targets well ahead of the initial timelines.

In addition to its focus on renewable power, Ambuja Cements is actively enhancing its Waste Heat Recovery Systems (WHRS) capacity. The company aims to scale up its current capacity of 103 MW to an impressive 397 MW over the next five years, with a substantial increase to 134 MW by March 2024. This strategic move is expected to further contribute to the reduction of power costs, consolidating Ambuja Cements’ position as a leader in sustainable practices within the industry.

These forward-looking initiatives are poised to elevate Ambuja Cements’ share of Green Power from the current 19% to an impressive 60% for the planned capacity of 140 million metric tons per annum. This signifies a remarkable commitment to sustainability and positions the company as a trailblazer in the adoption of green energy solutions within the cement and building materials sector.

As of 9:30 am, Ambuja Cements’ share price reflected investor confidence, trading 1.46% higher at ₹530.00 apiece on the BSE. This positive market response further underscores the significance and potential success of the company’s strategic shift towards sustainable and environmentally responsible practices.

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