Ambuja Cements to Invest ₹1,600 Crore in Bihar's First Cement Grinding Unit

5 Aug 2024 , 01:34 PM

On Saturday, August 3, Ambuja Cements announced an investment of ₹1,600 Crore to build a 6 MTPA Warisaliganj Cement Grinding Unit in Bihar. This will be the company’s debut project in the state.

The development will occur in three phases, with the first phase featuring a 2.4 MTPA capacity and costing ₹1,100 Crore. This phase is scheduled to be completed by December 2025. Future expansion plans are already in place, with provisions for additional capacity at a lower capital expenditure.

The new unit will be located in Mosama village, which is well-connected by both road and rail. This location has been chosen to support the growing infrastructure needs of Bihar, as outlined in the Union Budget.

At the time of writing on August 05, 2024 at 1:30 pm, shares of  Ambuja Cements is trading at ₹639 which is a 2.07% dip than the previous close. Ambuja Cements shares has witnessed a 34% gain in the last one year, and 19% gain since the beginning of the year.

During the foundation stone-laying ceremony, Bihar Chief Minister Nitish Kumar highlighted the investment as evidence of Bihar’s potential for growth.

Pranav Adani, Managing Director (Agro, Oil & Gas) and Director of Adani Enterprises Limited, noted that this investment aligns with the state government’s development goals and the company’s growth strategy. He emphasized that the cement industry is benefiting from increased government infrastructure spending, positioning Ambuja Cements to play a role in sustainable development.

The Bihar Industrial Area Development Authority (BIADA) has allocated 67.9 acres of land for the Warisaliganj Cement Grinding Unit. The company has obtained the necessary environmental clearance, and the unit is expected to be operational by December 2025.

Additionally, BIADA has allocated 26.6 acres in the industrial area of Mahbal, Motipur, Muzaffarpur, for another cement unit. Environmental clearance for this project is currently under review, and construction is expected to start soon.