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Ambuja Cements will invest ₹1,600 crore in a 6 MTPA cement grinding unit in Bihar. The unit will be implemented in three phases. The first phase, with a capacity of 2.4 MTPA and an investment of ₹1,100 crore, is scheduled for completion by December 2025.
Ambuja Cements share price will remain in focus today as the leading player in the Indian cement industry has announced a significant investment of ₹1,600 crore to establish a 6 million tonnes per annum (MTPA) cement grinding unit in Warisaliganj, Bihar.
This marks the company's first venture into Bihar, underscoring its commitment to expanding its footprint in the region.
The Warisaliganj Cement Grinding Unit will be implemented in three phases. The first phase, with a capacity of 2.4 MTPA and an investment of ₹1,100 crore, is scheduled for completion by December 2025. The company has made provisions for future expansion, which will be undertaken at a lower capital expenditure. The site, located in Mosama village, benefits from excellent road and rail connectivity.
This project aligns with Bihar's growing infrastructure needs, which are highlighted in the Union Budget. Bihar Chief Minister Nitish Kumar, at the foundation stone-laying ceremony, emphasised that this investment reflects the state's growth potential.
Pranav Adani, Managing Director (Agro, Oil & Gas) and Director of Adani Enterprises Limited, highlighted that the investment supports both the state government's development programs and Ambuja Cements' growth plans.
The Bihar Industrial Area Development Authority (BIADA) has allocated 67.9 acres of land for the Warisaliganj unit, with environmental clearance already obtained. Additionally, BIADA has allocated 26.6 acres for another cement unit in the industrial area of Mahbal, Motipur, Muzaffarpur, with environmental clearance pending and work expected to commence soon.
On Friday, Ambuja Cements' share price closed 1.43% lower at ₹654.5 per share on the NSE. Despite this, the stock has seen a robust performance in 2024, gaining 22.5% year-to-date and achieving a 12-month return of 38.05%.
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