Ambuja Cements aims to double capacity

Ambuja Cements, part of the Holcim group, is planning to double its capacity to 35 million tonnes (mt) in the next five years. The country's second largest cement maker is already expanding its capacities.

At a time when other comparatively smaller players are doubling and even tripling their capacities in the next few years, it is crucial for Ambuja to maintain its presence in the domestic market said a company official.

"In another two years time, we will be having a capacity of 27 mt. And again two years later, we can go for another 10 mt to reach around 35 mt capacity," said A L Kapur, managing director, Ambuja Cements.

Currently, the Rs 5,705 crore company has an installed capacity of 18.5 mt and is undergoing grinding capacity additions at Dadri (UP), Nalagarh in Himachal Pradesh, Sanad in Gujarat and Barh in Bihar. These projects are stipulated to be completed by 2010.

"Nadikudi plant in Andhra Pradesh is under our consideration. After the commissioning of our clinker plants at Bhatapara and Rauri by 2009, we will carry the proposal to the board. The kilns capacity of the new plant will be 1,000 tonnes per day. Along with it, we have plans for a plant in Rajasthan, too," said Kapur. The capacity of the kilns at Rajasthan plant is expected to be around 17,000 tonnes per day.

The company went slow on its Nadikudi plant as it was not possible to continue with two plants.

The other plant was at Maratha in Maharashtra which produced over 3 mt of cement last year. For Nadikudi, Ambuja has already got the land as well as the environment clearances.

According to industry analysts, investment required for these two plants, which amount to an overall capacity of around 10 mt, will be not less than Rs 4,000 crore.