Ambuja Cements—in which Swiss building materials major Holcim has a majority stake—will invest Rs. 802 crore this year from internal accruals to part- finance the ongoing capacity expansion projects.
“The year 2014 will see capital expenditure worth Rs. 802 crore over and above the Rs. 725 crore investment made in 2013. The entire proposed expenditure will be financed by internal accruals,” Ambuja Cements said in its annual report.
The company, which has 27.25 million tonnes per annum (mtpa) capacity, is setting up three greenfield plants of 1.5 mtpa capacity each in Rajasthan, Madhya Pradesh and Uttar Pradesh. It is also adding clinker capacity in West Bengal and Rajasthan by 0.8 mtpa each.
Ambuja Cements is investing Rs. 3,500 crore for setting up the 3 new plants. The expansion at Sankrail project is underway and is slated to cost Rs. 325 crore.
A new expansion project to set up a roller press at a cost of Rs. 70 crore at Rabriyawas unit in Rajasthan is also coming up. This will add 0.80 mtpa grinding capacity in the first half of 2014, Ambuja cements said.