Building Scale,
Ensuring
Operational
Excellence

Ambuja Cements continues to invest strategically across its operations to strengthen market presence and build a durable cost advantage. The Company’s efficiency-led approach focuses on reducing clinker factor, improving energy performance, optimising raw material and fuel blends, strengthening power sourcing, and increasing the use of alternative fuels and raw materials. These initiatives are further amplified through digital enablement, including real-time process optimisation, predictive maintenance, advanced analytics and automated quality control systems that unlock higher reliability and operational precision. The integration of AI and advanced technologies across the value chain is enhancing plant-level efficiency and reinforcing cement’s role as a catalyst for faster, future-ready growth. Supported by Adani Group synergies across logistics, energy, procurement and digital infrastructure, Ambuja is accelerating throughput, improving asset resilience and achieving superior manufacturing efficiency—creating a future-ready, competitive and sustainable production ecosystem.

With an aim to increase its capacity to 119 MTPA by FY 2026-27, the Company's focus is consciously shifting towards stabilising newly commissioned capacities and improving utilisation across the existing base. By prioritising higher utilisation and operating efficiency, the Company is strengthening the ability to meet its overall growth objectives while overcoming nearterm hurdles through disciplined execution with further capacity additions being pursued more gradually once optimal utilisation levels are achieved, reflecting disciplined capital allocation and a focus on return on capital employed.

Raw materials cost reduced by 4% on an annual basis, driven by the benefits of long term arrangement, group synergies and benefits from various capex investments made.

Looking ahead, costs are expected to moderate as multiple optimisation initiatives gain momentum, however, we continue to focus on improving our cost discipline. These include long-term sourcing arrangements for key raw materials, infrastructure upgrades for efficient material handling and increased use of lower-cost substitutes. Furthermore, cost efficiencies are anticipated through higher captive fuel utilisation, enhanced fuel flexibility, greater adoption of green power and alternative fuels, and targeted capital efficiency programmes, collectively supporting sustained improvement in operating performance.

Ambuja Cements accelerated a strategic logistics transformation in FY 2025-26 to lower delivered costs by 2% on an yearly basis, improve service levels and support rapid capacity build-out. The Company combined modal shift (coastal movement), targeted rolling-stock investments, network densification (blenders & terminals), and a step-change in digital control to shorten lead distances, increase direct dispatch and reduce freight intensity to support premiumisation efforts and enhance regional availability of products. Lead distance is expected to reduce further with the increasing footprints and sea logistics share is targeted to reach 5%, supporting a modal shift to lower-cost coastal movement. These structural changes, combined with targeted investments and digital controls, lifted direct dispatch to 61% and reduced logistics cost to approximately ` 1,270/ tonne in FY 2025-26, from ` 1,295/tonne in FY 2024-25.

On 19 August 2025, Ambuja Cements convened Agnigati - The National Logistics Meet, a flagship industry gathering that brought together more than 200 transporters, warehousing partners, service providers and logistics leaders to share innovations and align on a greener, more efficient logistics future. The event served as a collaboration forum and a launchpad for Ambuja Cements’ logistics digitalisation agenda, showcasing electric-vehicle pilots, port-linked grinding solutions and best practices for sustainable, highperformance supply chains.

At the heart of Ambuja Cements’ logistics transformation is Agnigati—a fully digital, end‑to‑end logistics orchestration platform that is redefining speed, accuracy and transparency across the Company’s supply chain. Agnigati seamlessly integrates trip generation, order allocation and in‑plant gate operations with real‑time delivery‑order creation, automated invoicing and livestock‑transfer management, ensuring faster and error‑free dispatches. The platform enables e‑invoice and e‑way‑bill automation, supports instant document uploads, and generates IGPs and loading advice directly at plant locations. Through deep SAP integration, Agnigati creates a unified data spine that links warehouses, plants and transporters—driving smarter decision-making, tighter controls, and a more responsive logistics ecosystem. Purpose‑built for scale, Agnigati boosts operational reliability, cuts turnaround times and elevates customer fulfilment-turning logistics into a strategic edge that delivers agility, service excellence and sustainable value.

The combined effect of the Agnigati meet and the portal has been threefold: (1) stronger partner alignment through shared visibility and capability building, (2) measurable operational benefits from process automation and realtime controls, and (3) acceleration of Ambuja Cements’ sustainability agenda by enabling modal shift, EV pilots and more efficient route/ source matching. By turning a one-day convening into an ongoing digital collaboration platform, Ambuja Cements has created a scalable logistics operating model that reduces lead times, improves on-time performance and supports its expanding coastal and depot network.

As businesses grow, scale initially delivers advantage. Over time, however, scale itself demands a higher order of discipline. Beyond a point, leadership is no longer defined by size, but by how intelligently that size is organised and governed.

Adani Cement has reached this inflection point.

With an expanding manufacturing footprint and a deepening market presence, the organisation is reimagining logistics through Navgati—a strategic framework that marks the next phase of the One Cement journey. Navgati reflects a deliberate shift in the role of logistics: from a movement‑led support function to a decisive lever of competitiveness, reliability, and value creation.

In this new paradigm, the central question is no longer how far the network can reach. It is how precisely, predictably, and productively it can serve. The future of cement logistics will not be defined by kilometres travelled, but by the intelligence applied to planning, execution, and governance.

Navgati aligns cement sales with the natural markets of manufacturing plants, driving improved asset utilisation, shorter lead distances, optimised freight costs, and stronger service reliability. Cost‑efficient delivery remains non‑negotiable, but efficiency is pursued alongside productivity, resilience, and long‑term value.

This shift is embedded through system‑led governance and a unified operating framework across the logistics value chain. Digital architecture enables a transition from reactive operations to predictive orchestration, while structural enablers—including DIGIPIN‑based freight allocation, automation, GPS‑enabled visibility, centralised S&OP‑driven demand planning, enhanced rail efficiency, and accelerated EV deployment-strengthen both performance and sustainability.

Supported by a robust backbone of GPS‑governed trucks, captive maritime assets, and multimodal infrastructure, Navgati builds more than efficiency. It builds resilience, enhances agility, and strengthens the confidence to serve a nation building at unprecedented scale and speed.

Through Navgati, integration at Adani Cement is not merely structural—it is operational. Not just aligned—but optimised. Executed with discipline, logistics ceases to be a cost to manage and becomes an advantage that compounds over time.

One Cement. One Integrated Network. One Standard of Excellence.

Ambuja Cements remains firmly focused on cost leadership through a comprehensive programme of operational and energy efficiency initiatives to overcome the volatile external cost environment. Fuel costs are optimised through higher use of alternative fuels, supported by the installation of chlorine bypass systems and additional shredding infrastructure, alongside strategic sourcing and negotiations. Power costs are reduced through maximisation of renewable energy through Solar and wind projects and the installation and commissioning of Waste Heat Recovery Systems (WHRS) across suitable kiln lines. Thermal energy consumption is further lowered by replacing outdated clinker coolers with high-efficiency systems to improve heat recuperation and reduce fuel usage. Electrical energy intensity is addressed through high-efficiency motors and drives, rigorous process audits, benchmarking and optimisation of grinding and clinkering operations. Productivity gains are reinforced through advanced control systems and digital tools to optimise kiln and mill performance—collectively strengthening the Company’s cost competitiveness and long-term sustainability.

Ambuja Cements is strengthening road and logistics safety through a structured, technology-led approach focused on prevention and accountability. Ambuja Cements has established world-class Driver Management Centres (DMCs) across its plants, manned by trained safety professionals to safeguard the well-being of all associated drivers. The centres deliver structured defensive driving programmes, GPS-enabled monitoring and behaviour-based safety coaching, complemented by continuous roadsafety awareness initiatives and stakeholder engagement.

The DMCs prioritise driver health and dignity through regular medical and eye check-ups, provide access to nutritious meals, clean rest areas and hygienic sanitation facilities. By recognising drivers and their families as essential partners in the value chain, Ambuja Cements reinforces its commitment to safer roads, improved livelihoods and responsible, inclusive growth.

The Company's Driver Management Centre (DMC) network currently covers 36 sites and 62 counsellors for wider coverage. A Logistics Safety Dashboard tracks key driving risks such as over-speeding, harsh braking/acceleration, and fatigue indicators, enabling targeted counselling and corrective action. To drive ownership, a Logistics Safety Scorecard recognises topperforming drivers, transporters, sites, and regions based on safety KPIs and compliance. Going forward, Ambuja Cements plans to strengthen recognition programmes, introduce mobile-based monitoring, install dashcams, and implement automated vehicle fitness checks at gate entry to further advance its Zero Harm ambition.

Ambuja Cements demonstrates its commitment to responsible mining by continuously improving equipment productivity, optimising fleet utilisation and minimising stock rehandling through efficient mine planning and procurement practices. It also remains focused on reducing its environmental footprint from mining activities.

Its Mine Management approach adheres to mining laws, environmental regulations and sustainability guidelines. Ambuja Cements adopts innovative and safe mining practices, including blastfree surface mining at Ambujanagar and controlled blasting using electronic detonators at other locations. Comprehensive dust suppression systems covered conveyor belts and well-maintained haul roads are used to limit emissions. Greenbelt development, community engagement and robust health and safety practices are also followed across all mining sites. In addition, structured mine closure plans, supported by compensatory afforestation and site rehabilitation, reinforce the Company’s long-term commitment to sustainable and responsible mining.

Product Quality Management

Ambuja Cements is committed to delivering consistently high product quality through a robust quality management system that enables continuous monitoring and control across the value chain. Quality checks are conducted on an hourly basis—from quarry to dispatch—ensuring superior cement performance for customers. Alongside quality excellence, the Company integrates sustainability into its processes by maximising the use of low-grade limestone, substituting natural gypsum with suitable industrial by-products, and optimising waste utilisation for thermal substitution. Advanced processing techniques support the development of customised premium and sustainable products, aligned with evolving market needs while progressively lowering the carbon footprint. Through disciplined cost optimisation and responsible growth, Ambuja Cements remains focused on delivering high-quality cement at competitive prices, creating enduring value for stakeholders.

Drone Monitoring for Safe Operations

The Company continues to ensure manufacturing excellence by deploying advanced drone technology to enhance efficiency, safety and asset reliability. Drones are used across multiple plant functions, including ultrasonic thickness measurement of chimneys and ducts, inspection of welding and bolting in preheaters, conveyor structures and clinker silo domes, and thermal imaging of cyclones and other high-temperature zones. They also enable accurate volumetric assessment of covered and uncovered stockpiles. From a safety perspective, drones support PPE compliance checks, monitoring of critical shutdown activities, housekeeping audits, mine mapping and contouring, security surveillance, confined-space inspections in cyclones, silos, kilns and chimneys, as well as internal and external area surveys and truck movement monitoring—significantly reducing exposure to high-risk tasks.

Technical Centre of Excellence

Ambuja Cements’ Technical Centre of Excellence (TCoE) plays a central role in advancing the Company’s ambition towards digital, low-carbon and high-efficiency manufacturing. The TCoE focuses on improving reliability, productivity and process efficiency across operations by deploying best-in-class technologies, systems and practices. It also serves as a hub for new product development, technical due diligence of expansion projects and evaluation of potential acquisitions, ensuring strong technical alignment with the Company’s long-term business and sustainability strategy.