Adani to build its first cement factory from scratch
Subscribe to enjoy similar stories. The Adani Group is in advanced discussions with the Odisha government to build its first greenfield cement factory, two years after embarking on its cement odyssey with a series of acquisitions. Group company Ambuja Cements Ltd is likely to build the 4 million tonnes per annum (mtpa) unit at a cost of ₹3,000-3,500 crore, said two people aware of the matter, including a government official.
"The agreements with the state government are in advanced stages. This manufacturing facility will be ready in two to three years," one of the two people cited above said on the condition of anonymity. Queries emailed to Adani Group and the Odisha government remained unanswered.
The Adani group that has so far only acquired cement businesses has also prepared a strategy to build new facilities from scratch, the person said, as the conglomerate aims to become India's largest cement maker. As part of its eastern foray, Adani recently announced plans to build a clinker grinding unit in Bihar for ₹1,600-2,000 crore. The Odisha plant will help the group expand its footprint further.
"The manufacturing facility will cost at least $85-100 per ton. This will be the group's first ever greenfield cement capacity. The group has finalized its discussions with the Odisha government and the target is to make the cement plant ready by FY28," the person cited above said.
On 3 August, Adani announced a 6 mtpa cement grinding facility in Bihar. "The grinding facility will cost around $45-50 per ton," the person said. The group plans to fund most of the expansion process through internal accruals.
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