Ambuja Cement prepares for 6-7% growth in 5 years

India’s second-largest cement producer, Ambuja Cement, expects cement demand to grow by 6-7 per cent in the next five years as the Indian government ramps up infrastructure investment. In 2015 the domestic cement sector expanded by 1-2 per cent.

To meet this future demand, the company plans to build an integrated cement works at Marwar Mundwa in Nagaur district, Rajasthan, with associated grinding units at Osara, Madhya Pradesh, and Dadri, Uttar Pradesh. The two projects reflect an investment of INR40bn (US$599m), according to the company. In addition, Ambuja Cement will also spend INR2.5bn on a new railway siding to connect the Rabriyawas facility, Rajasthan, to the nearest railway station.

As demand increases, the company will also be able to acquire new coal and limestone mines but expressed concern regarding the quality and price of coal. Moreover, the availability of mining land for limestone is also seen as an issue.  "While a coal block has been allotted through auction to secure coal availability, there is a need to secure the limestone supply," the company said.