INDIA – Cement and building material manufacturer Ambuja Cements has outlined an ambitious investment plan of Rs60 billion (US$722 million) in clean energy ventures.
A subsidiary of the Adani Group, Ambuja Cements aims to establish 1 gigawatt (GW) of renewable energy capacity via solar and wind energy generation ventures in Gujarat and Rajasthan.
In Gujarat, the company sets its sights on attaining 600 megawatts (MW) of clean energy from solar facilities and 150MW from wind energy projects. Rajasthan, on the other hand, is targeted for 250MW of solar power capacity.
The strategic goal includes achieving 200MW by March 2024 and accomplishing the full 1GW target by 2026, supplementing its existing 84MW of solar and wind power.
Ambuja Cements highlighted in its exchange filing that the transition to green power generation is expected to significantly reduce power costs—from Rs6.46 per kilowatt hour (kWh) to Rs5.16/kWh.
This cost reduction of Rs1.30/kWh (20%) translates into a Rs90 per metric ton reduction in cement costs by the financial year 2028.
The investment in renewable energy aligns with the company’s Environmental, Social, and Governance (ESG) targets.
Ajay Kapur, CEO of the Adani Group’s cement business, emphasized the firm’s commitment to sustainable practices and its transformative role in revolutionizing the cement industry.
Kapur stressed the alignment with national objectives of decarbonization and a greener future, anticipating increased competitiveness and sustainability. He also highlighted synergies within the Adani Group, augmenting the benefits realized.
Ambuja Cements additionally plans to enhance its waste heat recovery systems’ capacity from the current 103MW to 397MW by 2028.
Earlier this month, Ambuja Cements acquired a majority stake in Sanghi Industries (SNGI.NS) for Rs51.85 billion (US$ 623.69m).
This strategic acquisition enhances Ambuja Cement’s market presence underscoring Adani Group’s steadfast commitment to India’s housing and infrastructure development.
With the acquisition funded entirely through internal accruals, ACL holds a controlling stake of 54.51% in SIL. ACL is committed to leveraging operational synergies resulting from this acquisition to enhance efficiency, reduce costs, and maintain a sustainable approach to cement production.
SIL’s Sanghipuram 2700-hectare integrated manufacturing unit stands out as India’s largest single-location cement and clinker production facility.
This facility comprises of two kilns with an impressive clinker production capacity of 6.6 MTPA, a cement grinding unit of 6.1 MTPA, a dedicated 13 MW captive power plant and an efficient 13 MW Waste Heat Recovery System. The unit is seamlessly connected to a captive jetty in Sanghipuram.
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