Strong pricing in western India drives gains for Ambuja Cements

Recently secured long-term supplies of limestone bode well for the firm

Ambuja Cements recently announced it had secured limestone supplies in Maharashtra. The estimated limestone resource (reserves) stands at 42 million tonnes (mt), which Ambuja secured at a final bid price of 125.05 per cent of value of mineral dispatched; the premium is over the limestone price notified by the Indian Bureau of Mines. This bodes well for the company’s limestone security, especially looking at its significant exposure to the market in western India.

While the company has 4 mt capacity at Chandrapur district itself where the limestone deposits are located, the resources can cater to another 8 mt cement