Ambuja Cement plans to expand capacity to reach 50 MTPA

NEW DELHI: Ambuja Cement plans to increase its clinker capacities in its upcoming facility in Marwar Mundwa, Rajasthan by 3 MTPA, the company said in its annual general meeting held on Friday.

This greenfield integrated plant, at a total investment of Rs 2,350 crore, will commence operations by Q3 2021. This capacity expansion will help improve cement sales by 5 MTPA.

“We expect our expansion plans to add around 15 MTPA capacity in the mid-term taking our total cement capacity to 50 MTPA,” said Martin Kriegner, non-executive director of the company.

The board also declared an interim dividend of Rs 17 per share and has recommended a final dividend of Rs. 1 per share. Thus, the aggregate dividend for the year is Rs 18 per share and the total pay-out will be Rs 3,574.16 crore.

Ambuja is also evaluating brownfield expansions in Bhatapara and Maratha plants. It is also looking at significant debottlenecking opportunities across all plants.

The company’s operating EBITDA grew by 23% to Rs 2,647 crore and net profit grew by 17% to Rs 1,790 crore in 2020. Operating EBITDA and net profit margin for the year stood at 23.7% and 16% respectively, reporting a growth of 480 basis points and 260 basis points, over 2019.