Key facts
- Ambuja Cements forecasts India's cement demand growth to slow to approximately 5% in FY27.
- The company anticipates 6.5-7.5% growth in FY26.
- Capacity is set to increase to 119 MTPA by FY27 from 109 MTPA currently.
- Ambuja Cements is consolidating its cement business under a unified 'One Cement Platform'.
- Adani Group acquired Ambuja Cements for $6.4 billion in September 2022.
Ambuja Cements, a key player in the Indian cement industry and part of the Adani Group, anticipates a moderation in demand growth to approximately 5% for the fiscal year 2026-27. This follows an expected growth rate of 6.5-7.5% in the preceding fiscal year, FY26. The company's outlook, detailed in its annual report, is underpinned by continued demand from the housing and infrastructure sectors, alongside potential supportive government policies such as a reduction in Goods and Services Tax (GST) on cement.
Despite elevated input costs stemming from global supply chain disruptions, Ambuja Cements believes demand momentum will be sustained by urban housing projects, rural development initiatives, and ongoing investments in infrastructure like roads and railways. Leading cement manufacturers are actively expanding their capacities through both organic and inorganic strategies to maintain market positions and meet future demand. These companies are also focused on managing cost pressures related to coal, petcoke, and freight, as well as the impact of a depreciating rupee on imported materials.
Ambuja Cements itself has significantly increased its installed capacity to 109 million tonnes per annum (MTPA) in FY26, up from 89 MTPA a year prior, through strategic acquisitions and project execution. The company is on track to further expand its capacity to 119 MTPA by FY27. This expansion is part of a broader consolidation strategy under the 'One Cement Platform' initiative, which includes the amalgamation of ACC and Orient Cement to create a unified, pan-India building materials leader. Adani Group entered the cement sector in September 2022 with the $6.4 billion acquisition of Ambuja Cements from Holcim, subsequently pursuing inorganic growth by acquiring companies like Penna Cement and Sanghi Industries.