Ambuja Cement Ltd. has placed orders for projects to expand its blended green cement capacity by 14 million metric tonnes.
The Adani Group-owned company's new projects will increase clinker capacity by 8 million tonnes at Bhatapara (Chhattisgarh) and Maratha (Maharashtra) units, according to its exchange filing. That will include a waste heat recovery system of 42 MW, which will utilise 50% alternative fuels and operate on green power.
The projects are expected to be commissioned in 24 months, and the capital expenditure will be funded from internal accruals, according to the filing.
"These brownfield expansion projects are part of our strategy to double our production capacity over the next five years," Ajay Kapur, chief executive officer of the cement business, said in the statement.
Ambuja Preferred Bidder For Limestone Block
Ambuja Cement was also declared as the preferred bidder for the Devalmari Katepalli limestone block situated in Gadchiroli district of Maharashtra, according to another exchange filing.
The cement maker, during an e-auction held on May 9 on MSTC Ltd. portal, submitted the highest final price offer of 7.55%.
The bid included a grant of mining lease for limestone, bauxite and iron ore, and the grant of a composite licence for bauxite, copper, base metal, manganese ore, iron ore, platinum group elements including nickel, chromium and gold.
The block spans over an area of approximately 538 hectares with limestone resource of an estimated 150 million tonnes with calcium oxide content of more than 42%.
The company is required to obtain statutory licenses and permits related to mining operations in order to be declared a "successful bidder".
Shares of Ambuja Cement erased gains to trade 0.68% lower at 1:05 p.m. compared to slim gains in the benchmark NSE Nifty 50.
Of the 47 analysts tracking the company, 29 maintain a 'buy' rating, 12 suggest a 'hold', and six suggest a 'sell', according to Bloomberg data. The average of 12-month target prices implies a potential upside of 4.7%.
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