A dealer selling Ambuja cement speaks on his phone at his shop in Ahmedabad.
Credit: Reuters File Photo
New Delhi: Ambuja Cements Ltd, owned by Adani Group, on Monday said it will invest Rs 6,000 crore in 1,000 MW renewable power projects by FY26.
The transformative investment, funded through Internal accruals, encompasses a diverse portfolio of solar and wind power projects strategically positioned across Gujarat and Rajasthan, Ambuja Cements Ltd (ACL) said.
"The lineup includes a 600 MW solar power project a 150 MW wind power project in Gujarat, and a 250 MW solar power project in Rajasthan. This will be achieved by FY 2026 (200 MW by March 24) in addition to the existing 84 MW of solar and wind power.
"In a monumental stride towards a greener future, the company has committed a significant investment of Rs. 6,000 crores in renewable power projects, targeting a capacity of 1,000 MW," Ambuja Cements said.
The company is in expansion mode through organic and inorganic routes and aims to have a production capacity of 140 MTPA (million tonnes per annum). It is expecting to use 60 per cent of green power share in its total energy consumption.
"With the lower cost of generation from green power, our power cost will come down from Rs 6.46 per kWh to Rs 5.16 per kWh. A reduction of Rs 1.30 per kWh (20 per cent) translates into Rs 90 PMT of cement by FY 2028," the company said.
Besides, ACL is also enhancing its Waste Heat Recovery Systems (WHRS) capacity from the current 103 MW to 397 MW over the period of five years, which will further reduce the power cost.
"These initiatives are a pivotal part of a broader vision which will help Ambuja achieve the leading share of green power amongst its peers, reaching 60 per cent for the planned capacity of 140 MTPA from the current 19 per cent," it said.
Ambuja, with its subsidiary ACC Ltd and recently acquired Sanghi Industries Ltd, has a capacity of 74.6 MTPA with eighteen integrated cement manufacturing plants and fourteen cement grinding units across the country.
Adani Group Cement Business CEO Ajay Kapur said: "This strategic investment reaffirms our steadfast commitment to sustainable practices. We are not just aiming for a substantial increase in green power capacity but setting the stage for a transformative shift in the cement industry".
This aligns not only with Adani Cement's growth trajectory but also with the national objective of de-carbonisation and a greener future, and this helps us become competitive and sustainable, he added.
For the financial year ended March 31, 2023, ACL's revenue from operation was Rs 38,937 crore.
Earlier this month, ACL announced to complete acquisition of Sanghi Industries Limited (SIL) at an enterprise value of Rs 5,185 crore.