Ambuja Cements' manufacturing capital comprises state-of-the-art facilities, advanced technology, and sustainable manufacturing capabilities, which have sharpened its competitive edge in manufacturing a diverse range of cement. With ongoing investments to enhance capacities, the Company responsibly adheres to stringent environmental regulations, ensuring the sustainability of its operations.
UN SDGs Impacted
Stakeholders Impacted
Suppliers
Employees
Government and Regulatory Bodies
Construction Professionals
Material Topics
- Capacity Utilisation and Current Demand
- Land Acquisition for Mines and New Operations
- Energy Efficiency
- Compliance to Regulatory Requirement
Focus Areas
Developments and Key Initiatives |
Key Performance Indicators |
|
|---|---|---|
Capacity |
Expanded capacity through acquisition of Asian Concretes and Cements Pvt Ltd, Sanghi Industries Ltd, grinding unit at Tuticorin. Capacity expansion projects across country:
|
140 MTPA
Capacity by FY 2027-28 |
Enhancing |
Commissioned 52.5 MW of Waste Heat Recovery Systems (WHRS) during FY 2023-24 Leveraging Group synergies to achieve cost leadership in the industry Continued to implement multiple initiatives such as optimising raw material mix Digital transformation through:
|
376 MW WHRS
Capacity by FY 2027-28 27% TSR
by 2030 (23% standalone TSR target for Ambuja Cements) |
Sustainable |
Reducing environmental impact of the Company’s operations through:
|
60%
of the overall energy consumption to be powered by renewables by FY 2027-28 1 GW
of Solar and Wind Energy implementation by FY 2025-26 |
Quality |
State-of-the-art cement and concrete R&D facility to ensure complete quality control |
Following BIS
for all products |
Overview
The Company’s daily operations are facilitated by physical infrastructure, like land, buildings, production plants, leased mines, heavy machinery, equipment fleet, furniture, and fittings, among other components.
Clinker production
Clinker production
Captive power generated (Mn units)
Installed capacity of captive power plants
WHRS generated (Mn units)
MW WHRS Generation Capacity
Thermal Substitution Rate (TSR) achieved
Waste derived resources used
Green Power Consumed
Development and Efficiency
The Company invests continuously to strengthen its market position, striving for greater efficiency, cost competitiveness, and environmental sustainability, providing a competitive edge. Key measures of this reporting year include:
Capacity Expansion
- Completed the acquisition of Sanghi Industries Limited (SIL) through internal accruals. SIL's assets include a clinker capacity of 6.6 MTPA, a cement capacity of 6.1 MTPA, and significant limestone reserves. The strategic acquisition enhances Ambuja Cements' coastal presence. The Company aims to reach a cumulative capacity of 15 MTPA in west coast markets over the next 30 months
- The Company's capex projects aim to increase cement production by establishing new plants, debottlenecking existing ones and enhancing efficiencies. The Company recently announced various capacity expansions for blended cement, with a 42 MW waste heat recovery system capacity, 50% alternative fuel and resource utilisation, and green power operation
- Ambuja Cements proposed setting up of a 4.0 MTPA cement grinding unit in Godda
Seamless Integration of Acquired Companies
Sanghi Industries Limited (SIL)
Sanghi Industries Limited has transitioned to Ambuja Cements, incorporating Adani Group’s vision and culture. The SIL channel partner network has been engaged and smoothly integrated alongside the completion of SAP migration. Jetty improvements, including channel widening and dredging, increased vessel loading efficiency to 11,000 MT and road dispatch capacity to 14,000 MT. Continuous efforts enhance plant stability and machinery, optimising kilns and mills and replacing equipment to maximise productivity.
Employee well-being is prioritised with enhanced health services, hospital tie-ups, and infrastructure improvements. Engagement activities like movie screenings and family events, along with pay protection for transitioned employees are emphasised. CSR initiatives, including health camps, driver empowerment programmes, educational efforts, and cattle vaccinations, positively impact local communities, demonstrating a commitment to holistic development.
Increase in average per day Clinker production
Increase in average per day Cement production
Asian Concretes and Cements Pvt Ltd
The seamless integration of Asian Concretes and Cements Pvt Ltd into ACC Ltd, guided by Adani Group’s vision, has been completed. Following the acquisition, plant capacity utilisation rose from 28% to 52% between December 2023 and March 2024. Cement quality is ensured through fully automatic ROBO Lab inspections with NABL accreditation. Employee welfare was prioritised, with safeguarded pay and a new healthcare facility. Measures to enhance safety include Saksham training, a permit-to-work system, and PPE distribution. ACC's integration and upgrade efforts have improved the overall operational performance, quality standards, employee benefits, and safety protocols.
Plant capacity utilisation rate achieved post-acquisition as of FY 2023-24
Brownfield clinkering unit at Bhatapara and 21 MW waste heat recovery system in Chhattisgarh
Brownfield clinkering unit at Maratha and 21 MW waste heat recovery system in Maharashtra
Brownfield cement grinding unit at Bathinda, Punjab
Brownfield cement grinding unit at Sankrail, West Bengal
Greenfield cement grinding unit at Mundra, Gujarat
Brownfield cement grinding unit at Farakka, West Bengal
Brownfield cement grinding unit at Marwar, Rajasthan
Raw Material Security
- To secure limestone supplies, the Company has won bids for 24 new limestone mines with one in Maharashtra, one in Madhya Pradesh; two in Gujarat and twenty in Rajasthan. Together, these limestone resources are estimated to have a total of 587 MMT in addition to 1 billion MT of Sanghi.
- Besides the 1.2 MTPA captive coal mine at Gare Palma which Ambuja Cements has since 2018, the Company won the bid for a 1 MTPA coal mine in Dahegaon Gowari in Maharashtra.
Energy
- The Company implemented Waste Heat Recovery Systems (WHRS) across various locations to minimise power costs and promote green energy. The current generation capacity is 75.9 MW, with an additional 11.6 MW capacity to be augmented at its Ambujanagar, Gujarat and Maratha, Maharashtra plants soon.
- Reaffirming its commitment to sustainable practices, the Company is continuously increasing the share of Alternative Fuels and Green Power. With an investment of over ` 10,000 crore in green power projects, the Company aims to power 60% of its planned 140 MTPA cement capacity through 1 GW of solar and wind power and 376 MW of Waste Heat Recovery System (WHRS) by FY 2027-28, offering compelling economic advantages.
Green energy in total energy consumption
Waste heat recovery systems commissioned in Ambujanagar, Maratha, Rauri, Suli, and Bhatapara cement plants
Logistics
The Company has been undertaking several initiatives to rationalise its logistics cost, a key cost component. Ambuja Cements is aiming to set a new standard by reducing the average primary road lead by 50 kilometres, with network optimisation along with increasing the share of wallet in the closer market. This initiative marks significant progress in the Company’s efforts to optimise warehouse operations. With a strong emphasis on sustainability and cost reduction in logistics, Ambuja is optimising transportation mix by leveraging 11 GPWIS rakes for efficient clinker movement from the mother plants. Additionally, Ambuja Cements has allocated 26 Bogie Covered Fly Ash/Cement (BCFC) rakes to ensure the safe and costeffective transportation of fly ash from thermal power plants to its facilities. These cost-saving measures are primarily driven by effective route planning at the micro-market level, strict adherence to its primary source, renegotiation of commercial terms and the integration of GPS and other technological solutions.
Driver Management Centre (DMC)
The Company has been scaling up Driver Management Centres (DMCs) and upgrading their deliverables. Ambuja Cements continued its focus around safety, skill development and driving behaviour management of truck drivers with Driver Defensive Induction (DDI) for all new truck drivers, and Driver Defensive Training (DDT) for all drivers - a mandatory course, repeated every six months.
Engaging with the driver community and counselling them towards safety-oriented behaviour is consistently carried out with daily Tool Box Talk (TBT), Journey Risk Management (JRM) briefing and IVMS (GPS)- based counselling.
Manufacturing Performance
The Company has adopted worldclass manufacturing standards by integrating cutting-edge technologies, streamlining production processes, and upholding rigorous quality control measures. The Company is working consistently to boost operational efficiency, reduce costs, and minimise its environmental footprint.
Highlights for FY 2023-24
Utilised around 8.6 million tonnes of waste-derived resources in line with the commitment of continuously reducing the usage of natural resources in manufacturing.
In the heart of Mumbai, the Mumbai Trans Harbour Link (MTHL), christened Shri Atal Bihari Vajpayee Trans Harbour Link, proudly stands as India's longest sea bridge, a symbol of infrastructural prowess. Ambuja Cements played a pivotal role in this engineering marvel, contributing 1.22 lakh MT of cement out of the 2.24 lakh MT required. Recognising Ambuja Cements' expertise, the Company was as a frontrunner based on its proven track record.
Efficiency Improvement
Ambuja Cements remains committed to investing in the crucial facets of its operations, aspiring to emerge as one of the most cost-competitive cement manufacturers in the country. Its comprehensive and strategic initiatives focus on the reduction of clinker factor, improvement in energy efficiency, optimisation of raw material and fuel blends, enhancements to power sources, and the increased utilisation of alternative fuels and raw materials within its manufacturing processes.
Energy Efficiency
Ambuja Cements has implemented several measures to enhance productivity and reduce energy consumption across its operations such as:
- Modified mill internals to improve productivity and decrease energy usage
- Adjusted grinding media patterns, resulting in a reduction in energy consumption during grinding processes
- Modified coolers to enhance heat recuperation, thereby reducing fuel consumption. Inefficient coolers have been replaced with more efficient alternatives, further reducing thermal energy consumption
- Substituted classifying liners in cement mills, contributing to a decrease in electrical energy consumption
- Upgraded its transportation equipment to more energyefficient modes, reducing energy consumption during material movement
- Automated mill and kiln operations using emerging technology to improve specific energy consumption through consistent operations
Reduction in operating cost per tonne of CLC in FY 2023-24
Improving Productivity
The Company has undertaken several initiatives to enhance grinding efficiency and optimise equipment, to boost productivity and efficiency:
- Modified grinding circuits, improving grinding efficiency, ensuring smoother and more effective operations
- Focused on enhancing equipment through various initiatives
- Optimised the use of grinding aids to maximise efficiency and productivity, ensuring that resources are utilised effectively
Increase in EBITDA per tonne of CLC in FY 2023-24
Cost Efficiency
To enhance sustainability and cost-effectiveness, Ambuja Cements has implemented various initiatives:
- Introduced Bogie Covered Fly Ash/Cement (BCFC) rakes to streamline Fly Ash availability and reduce associated costs
- Installed Carbonated Fly Ash (CFA)
- Feeding Systems have been prioritised to further enhance efficiency in resource utilisation
- Bogie Covered Fly Ash/Cement (BCFC) has also taken steps to source Flue Gas Desulfurisation (FGD) Gypsum, promoting the use of recycled materials in its processes
- Installed AFR pre-processing and feeding systems instrumental in diversifying fuel sources and reducing reliance on traditional fuels
- Implemented a gas bypass system which has been undertaken to increase the utilisation of alternative fuels, contributing to a more sustainable and environmentally friendly operation
Product Quality Management
Ambuja Cements prides itself on delivering top-notch product quality. The Company’s rigorous quality management system ensures constant monitoring and maintenance to uphold the highest standards.
Recently, the Company inaugurated a state-of-theart cement and concrete R&D lab facility at Navi Mumbai, symbolising its commitment to innovation. Emphasising resource conservation, the Company maximised the use of low-grade limestone in cement manufacture, reflecting its dedication to sustainability.
Moreover, the Company successfully replaced costlier natural gypsum with more affordable by-products, a strategic move that maintained the quality of the cement. Exploring environmentally friendly coprocessing for thermal substitution and resource conservation, the Company maximised the utilisation of industrial waste.
The Company’s focus on quality enhancement extended to innovative processing techniques, improving the quality of blended cement by utilising industrial by-products across all Ambuja Cements' plants. Market-driven product development remained a priority, with a dedicated effort to lower the carbon footprint in alignment with environmental goals.
Quality benchmarking exercises were also conducted systematically for different market clusters of Ambuja Cements products, ensuring consistency and excellence. Automation using analytical equipment was implemented for data accuracy and compliance monitoring, guaranteeing the uniform quality of the products through digitisation.
Excellence through AWMS
The Adani Group launched the Adani Workplace Management System (AWMS), which follows the 5S philosophy. 5S is considered the first step on the journey to excellence for an organisation. It is a method of creating a self-sustaining culture which perpetuates a neat, clean, safe, and efficient workplace; a method of removing all excess materials and tools from the workplace and organising the required items such that they are easy to find, use, and maintain. AWMS has been rolled out across all plants.
Further advancements included establishing effective polypropylene bag quality control and automation in bag testing. Quality practices were standardised at all manufacturing locations through continuous improvement initiatives, ensuring a unified approach to excellence.
Average mean time between failures (MTBF) increased from 521 hours
Mining
The Company’s integrated cement plants are directly connected to captive limestone mines, ensuring a seamless supply of essential raw materials. The Company is implementing these measures to optimise and enhance the efficiency of its mine operations:
- Eco-friendly mining with noblast technique by deploying surface miners in coastal areas
- Adopted zero-waste mining policies
- Adopted safe practices in each mine during development and operation
- Made mining operations safetyconscious by deploying mining equipment with minimum exposure of workers to health and occupation hazards
- Proper blending of low-grade and high-grade material for optimisation of resources as well as maximising life of mines
- Conservation of mineral, water, and other natural resource materials
Supply Chain and Logistics
During the reporting year, the Company has improved and optimised its logistics cost by leveraging Group synergy. Ambuja Cements has implemented advanced logistics and fleet management digitalisation for real-time vehicle tracking, enhancing efficiency and leading to optimised logistics expenditure.
The Company has also adopted integrated excellence projects for logistics cost rationalisation.
The Company has enabled a seamless supply of raw materials at plants by procuring Bogie Covered Fly Ash/Cement (BCFC) and Bulk Cement Carrier Wagon (BCCW) rakes to enhance fly ash availability and bulk cement transportation.
Enhancing Logistics
Go Direct
Implemented digital solutions to optimise the supply chain simultaneously, expanding the fleet capacity for D2C delivery
Agile and Automated Logistics Infrastructure
Introduced in-plant automation measures such as advanced tracking and tracing of primary vehicles, resulting in decreased truck turnaround times and a substantial boost in dispatch capacity
Commercial Excellence
Enabled advanced scientific models to optimise operations and strategically renegotiate freight and handling rates for enhanced cost-effectiveness and profitability
Push towards Low-Cost Green Energy
Transitioned from diesel to compressed natural gas (CNG) and electrical energy to significantly reduce the Company's carbon footprint while optimising logistics costs for enhanced sustainability and economic efficiency
Real-time Demand and Supply Optimisation
Integrated cutting-edge digital tools for instantaneous order processing, ensuring precise source matching based on cost-effectiveness and service quality to meet increasing demands
Digital Transformation
Established a centralised logistics control tower to monitor realtime performance comprehensively and proactively take necessary actions for continual improvement and operational excellence
Implementing Best Practices with ‘udAAAn ’
Under 'udAAAn', Ambuja Cements has implemented numerous result-oriented initiatives across logistics, manufacturing, and sales aimed at enhancing the efficiency and quality of its operations. Some of the key initiatives include:
Logistics
- Building EV truck operations with successful trials already conducted
- Improved productivity of fleet through ‘Track & Trace’ solutions
- Optimised and reconfigured warehouses by opening ~40 small capacity warehouses
- Created a dashboard for tracking rail rake with key parameters
- Finalising the logistics dashboard
Manufacturing
- Launched ‘udAAAn Performance Index’ (UPI) to measure manufacturing performance
- Launched ‘Copy with Pride Framework’ to reduce time taken to replicate and maximise benefits
- Conducted intra-plant and inter-plant competitions of completed initiatives to motivate teams and encourage excellence