Cement demand is likely to grow in the range of 4-5% during FY25: Ambuja Cement CEO
Oct 28, 2024
Ahmedabad (Gujarat) [India], October 28 : Ambuja Cements, whole tme Director & CEO Ajay Kapur, expressed optimism regarding the company's outlook and said cement demand is likely to grow in the range of 4-5 per cent in FY25.
He highlighted the anticipated growth in cement demand for the second half of the fiscal year 2025, driven by robust infrastructure activity and the ongoing needs of the housing and commercial sectors.
Kapur said, "Strong infrastructure demand and ongoing needs from the housing and commercial sectors are anticipated to boost cement demand in H2FY 2025. The introduction of Pradhan Mantri Awas Yojana Urban Housing II with an allocation of Rs 11 lakh crores along with the government's continued focus on infrastructure development as the key to economic growth augurs well for the cement sector."
He added, "Strategic investments in roads, railways, along with urban and commercial amenities is poised to drive robust growth. We expect demand during FY 2025 to grow in the range of 4-5 per cent."
In line with its commitment to sustainable growth, Ambuja Cements has laid out an ambitious plan to significantly increase its green power capacity, aiming for green energy to make up 60 per cent of its total power mix.
He stated, "We are aiming for a significant increase in green power capacity taking green power share to 60 per cent. We are reaffirming our commitment to sustainable practices with an investment of Rs. 10,000 crores in 1GW solar and wind power projects. Additionally, we are also adding more waste heat recovery systems and alternative fuels to the mix."
He added, "By the end of FY25, we will reach 218MW of WHRS, promising compelling economic benefits to our planned larger capacity of 140 million tons per annum."
The company is also focusing on strategic investments and capacity expansions to bolster its market position. With the successful completion of the Orient Cements acquisition, Ambuja Cements' total cement production capacity will rise to 97 million tons per annum.
Kapoor emphasised, "Coming to strategic investments and expansions, post successful completion of the Orient Cements transaction, our total cement capacity will go up to 97 million tons per annum. Multiple acquisitions are adding to the economies of scale, greater efficiency, better use of resources and long-term environmental sustainability."
He noted, "The acquired assets with captive jetties as well as coast-based bulk cement terminals have reinforced the marine logistics. Assets of Orient Cement will further strengthen our presence in core markets and improve our pan-India market share by 2 per cent."
