Capital-wise performance

Manufactured capital

Effective management of our manufacturing assets contribute to our operational efficiency, profitability and continued growth. During the year, we continued to maximise our existing facilities, implement planned expansion and invest in Industry 4.0 through the Plants of Tomorrow initiative that is designed to make manufacturing more sustainable and safer.

We paused to prepare better. And then surged ahead to achieve.

The cement plant of the future will embrace digitisation and sustainability trends to earn a competitive advantage and build resilience.

Challenging times in the recent past have proved the importance of building resilience into the core of any manufacturing industry. The path forward for our industry is clear - embrace digitisation and sustainability in the cement plant.

Ambuja has incorporated both these trends at the core of its planning as evident with its newest plant, Marwar Cement Works which is clearly a trendsetter as a Plant of Tomorrow.

With the vision that the cement plant of the future would boost productivity and efficiency, innovations were incorporated in Marwar right from the planning stage. A strong technological base facilitated a fully-integrated cement value chain, across different functions.

The entire operation of Marwar Cement Works is guided by the state-of-the-art Robotic Lab, which has the highest number of auto sampling points. Robotic arms across the plant, collect samples in capsules and transport to the lab for analysis with absolute accuracy guaranteed without any human intervention. Automated sampling has eliminated hazards associated with physical sampling besides creating a dust-free environment in labs and sample rooms.

Mining operations are assisted by another advanced technology that examines limestone samples at 1/10th of a second and updates operators on consistency of input materials within minutes. Besides time, fuel consumption is reduced due to consistency in raw material; and thus energy is saved.

This targeted and effective maintenance lengthens the lifeline of the equipment. The plant’s environmental footprint is minimised, securing its license to operate across locations. All non-value added tasks are automated and real-time information is remotely available at all levels to make better decisions.

The swift turnaround is an example of spirit that has helped Marwar stay ahead of competition. we had only visualised a plant with this level of technology, automation and digitisation. For us at Ambuja, it is a dream come true.




Construction professionals


Government and regulatory authorities


  • Capacity utilisation and current demand
  • Energy efficiency
  • Land acquisition for mines and new operations
  • Compliance to regulatory requirement


  • Market position
  • Scarcity of natural resources


Value creation at a glance


Developments and key initiatives



  • Commissioning of the new greenfield unit at Marwar
  • Embarked on brownfield expansion and waste heat recovery projects among others

6 . 1 %

increase in grinding capacity in CY2021


  • Strengthening the Plants of Tomorrow initiative to strengthen digitalisation
  • Leveraging other efficiency enhancement initiatives to emerge as a lean manufacturer

30 bps

increase in operating cost as a percentage of operating revenue in CY2021


Reducing the environment impact of our operations through:

  • Enhanced use of waste
  • Increased share of green energy

96 bps

increase in thermal substitution rate

154 bps

improvement in clinker factor in CY2021


Continuous investments in quality control and quality assurance measures

> 95 %

compliance in Annual Quality Programme
(AQP) in CY2021


Our manufactured capital consists the tangible objects that facilitate our day-to-day operations and delivery of our products. This includes physical infrastructure such as our land, buildings, production plants, mines on lease, heavy machinery, equipment fleet, and furniture and fittings among others.


At Ambuja Cement, we continuously invest to strengthen our market position and evolve as a more efficient, costcompetitive and environmentally sustainable organisation. Key initiatives of the year include:

Capacity expansion
  • We have set up a greenfield integrated plant with 3.0 MTPA clinker capacity and 1.8 MTPA cement grinding capacity at Marwar in Nagaur District of Rajasthan. Commercial operations commenced from September 2021 and installation of a Waste Heat Recovery System (WHRS) of ~ 14.5 MW capacity is in progress
  • We are setting up a 1.5 MTPA brownfield grinding unit at Ropar, Punjab at a total investment of ~`310 crore
Raw material security
  • To secure our fuel resources, we acquired a coal block at Gare Palma sector IV/8 in Chhattisgarh through e-auction. Open cast mining at full capacity commenced from October 2018 and underground mining commenced from October 2021
  • To secure long-term limestone requirement for the Bhatapara plant, we commissioned a new limestone mining lease at Maldi Mopar. The Limestone Crusher and Conveying system, with a project cost of ~`190 crore, has commenced operations from July 2021
  • To secure the long-term limestone requirement for the Ambujanagar plant in Gujarat, we acquired a new mining lease at Lodhva. Environmental clearance and other required approvals for the mining lease have been obtained. Land acquisition is in progress, along with necessary infrastructure development
  • To ensure adequate availability of dry fly ash, we are setting up fly ash dryers/hot air generators at Ropar and Bathinda (Punjab), Nalagarh (Himachal Pradesh), Dadri (Uttar Pradesh), Roorkee (Uttarakhand) and Rabriyawas (Rajasthan) with an estimated investment of `140 crore
  • To meet future limestone requirement, we have invested `77 crore to purchase land at Ambujanagar, Darlaghat and Bhatapara
  • To secure limestone needs of the Maratha Cement Works plant in Chandrapur, Maharashtra, we have acquired a new mining lease at the Nandgaon Ekodi mine. Environmental clearance and other required approvals for mining are in progress
  • To minimise power cost and enhance the use of green power, we are setting up WHRS (totalling 53 MW capacity) at Marwar, Darlaghat and Bhatapara plants at a total investment of over `550 crore. The projects are expected to be completed by April-June quarter of 2022
  • To reduce power cost and increase usage of green power, tendering and requisite approvals are in progress for WHRS at the Ambujanagar and Maratha plants in Gujarat and Maharashtra, respectively

To strengthen our logistical capability and enhance customer outreach, a new railway siding project at Rabriyawas has been commissioned at a total investment of ~`210 crore. Clinker and cement despatch by rail started from October 2021.

` 380 crore

Spend on development and efficiency capex in 2021 (excluding Marwar expansion)


We adopt best practices in manufacturing. Our parent, Holcim, has developed a ’Cement Industrial Framework’, which defines the systemic approach towards manufacturing in its entirety, including people and processes. This framework is the guiding principle for all manufacturing activities at Ambuja Cement.

The framework has helped us in running operations more efficiently, strengthen plant availability and ramp up production seamlessly. Some of the highlights for the year includes:

  • Utilised around 8.6 million tonnes of waste derived resources in production, in line with our commitment of continuously reducing use of natural resources in manufacturing
Cement production volume (Mn tonnes)
Capacity utilisation (%)

In order to emerge as one of the most cost-competitive cement manufacturers in the country, we make continuous investments in the areas of clinker factor reduction, energy efficiency, raw material mix and fuel mix optimisation and enhanced use of alternative fuels and raw materials in manufacturing.

Plant efficiency
  • Reduction in electrical power consumption achieved through optimisation of grinding media charging and optimisation of grinding aid consumption
  • Installation of new high momentum and low NOx burner in Ambuja, Gajambuja and Bhatapara
  • Baghouse filter bag replacement with low drag to reduce the pressure drop, leading to reduction of SEEC (Specific Electrical Energy Consumption)
  • Installation of IKN Cooler to reduce heat consumption and improve efficiency at Bhatapara
  • Reduction in SHR (Station Heat Rate) and auxiliary power consumption by replacing SJAE with vacuum pump for STG3
Cost rationalisation
  • Maximisation of Wet fly ash (WFA) and conditioned fly ash (CFA) usage to reduce overall fly ash cost
  • Replacement of 50% traditional High Speed Diesel usage with pyrolytic oil at the time of cold kiln startup
  • Maximisation of alternative fuels and raw materials to reduce fuel cost
  • Optimisation of raw mix in fuel to reduce overall cost of cement
  • Use of molecule-based grinding aid to reduce procurement from vendors
  • Maximum utilisation of fly ash to reduce clinker factor
  • Variable Frequency Drive (VFD) Installation in In-line Calciner (ILC) Coal Firing Blower to save 480 kWh per day
  • Increase in the nozzle area of raw mill from 5.25 m2 to 6.55 m2 to reduce pressure drop in system and increase mill productivity
  • Mill Master commissioned for better mill performance


Our optimisation efforts during the year resulted in the following:

  • Optimisation of kiln operation to reduce Specific Thermal Energy Consumption (STEC) from 769 kCal/kg of clinker to 746 kCal/kg of clinker
  • Optimisation of kiln and cement grinding mill to reduce power consumption from 61.4 to 60.2 kWh/t of clinker in kiln and 37.4 to 36.0 kWh/t of cement Grinding


Our investment in Industry 4.0 under the ‘Plants of Tomorrow’ programme is part of Holcim’s Strategy for Growth 2022. The initiative aims to make manufacturing more efficient through better plant optimisation, higher plant availability and a safer working environment. We are implementing several projects under the programme including FinCem and free lime prediction among others. Once implemented and certified, a plant usually promises 15-20% more operational efficiency compared to a conventional cement plant.

Power and fuel cost per tonne (`)
Thermal substitution rate (%)

We have an impeccable record in delivering superior quality products. Our quality parameters are stringent and we keep a close tab on them to improve the overall Product Quality Index (PQI).

Our product quality monitoring strategy includes daily testing on defined quality parameters; three-day and 28-day measurement of coefficient of variations, clinker quality assessment; customer satisfaction; bi-monthly product benchmarking; bi-monthly application-oriented product testing; monthly testing of random market samples and monthly assessment of bag quality index.

We are compliant with all the statutory requirements as mandated by the Bureau of Indian Standards (BIS) as well as all weights and measures norms. As a statutory compliance, our bags display the contact details for customers to communicate any complaint, observation and query.

To ensure consistent results, we follow the round robin test methodology to identify issues and improve upon the same.

Key initiatives to improve overall process/product quality during the year:
  • Installed robotic lab for real time quality monitoring and control of cement manufacturing at Marwar
  • Installed Cross Belt Analyser for real time quality check of input limestone from mines
  • Implemented Technical Information System (TIS) for production and lab data information
  • Use of molecule-based grinding aid to improve the strength of cement
  • Optimised SO3 across location to improve strength
  • Qualitative and quantitative identification of clinker phases for strength optimisation using X-ray Defraction Meter (XRD)

The past year saw continuation of the challenges created by the pandemic. Although disruptions were more localised during the second wave, they still caused uncertainty of demand and costs and put the supply chain under pressure.

Relieving stress

Despite the challenges, our team ensured continuous supplies to all markets and healthy inventories with utmost focus on safety amidst while maintaining all COVID protocols. The major enablers were technology-driven operations and high agility among the teams as well as the service providers. With management focus on sales and operations planning, we were able to respond to market variability with agility.

Technology as a driver for cost

Digitalisation initiatives across the supply chain helped optimise cost. Transport Analytics Center (TAC) is being used for finding deviations on the ground. We are also using best-in-class tools for network optimisation, Sales & Operations planning, e-platforms for freight procurement, etc. All our logistics excellence projects are driven through automated dashboards.

Freight reduction

Several initiatives are being taken to improve efficiency and negotiate contracted rates. We are using the latest e-procurement platforms to discover real time freight rates. Vendor performances are being closely tracked and monitored to improve their value proposition.

Safety and Sustainability

The Driver Management Centres (DMC) that were closed during the initial phase of the pandemic were re-opened to engage with the driver community and counsel them towards safety-oriented behaviour. TAC has also helped develop more meaningful safety dashboards for use by the Driver Management Center (DMC). We are developing a Carbon Reduction tracker while working on bio-fuel trails, e-vehicles, lead reduction and mode mix to reduce our carbon footprint.


We have undertaken strategic initiatives in our value chain for energy sourcing and are developing in-house capacity to cater to our energy needs. Some of these include use of alternative fuels/Biomass, Waste Heat Recovery (WHR), renewable energy like, wind and solar and implementation of energy management system (ISO 50001:2011). A substantial part of our power consumption comes from our captive power plants at four integrated plants and one grinding unit.


Share of power sourced from captive units in 2021


Our integrated units have captive mines for limestone.

How we ensure optimum utilisation of mines:
  • Maximise the use of alternative and waste derived materials in the process
  • Effective and efficient mining and extraction processes without disturbing the ecological balance
  • Use of limestone Screening end extraction

Our Group policy prohibits operations in the immediate vicinity of specific biodiversity zones, world heritage sites or International Union for Conservation of Nature (IUCN) category I-IV protected areas. We adhere to the Holcim Group Quarry Rehabilitation and Biodiversity Directive, requiring us to prepare a Biodiversity Action Plan (BAP) for sensitive sites. Every three years, a biodiversity indicator reporting system (BIRS) assessment is undertaken, as per IUCN guideline, and an improvement/action plan prepared.

All issues with the local community are resolved through dialogue and negotiations. There were no strikes or lockouts at our mines during the reporting period.

Key initiatives undertaken in the mines during the year


  • Initiated pilot project for real-time monitoring of equipment performance
  • Conducted study for use of electrical excavator in place of diesel excavator


  • Reduction in limestone purchase from market owing to GALM mines limestone extraction (30,000 MT)
  • Strengthened in-house maintenance of tippers and water tanker to reduce the AMC/FMC charges
  • Initiatives undertaken to reduce diesel consumption
  • Reduction of moisture percentage in limestone
  • Initiated pilot project for use of Compressed Natural Gas (CNG) in tippers and bulkers
  • Pilot project on electric vehicles for limestone transportation


  • Implemented raw mix design with higher SO3 percentage to increase mine life
  • Initiatives on reduction in fuel consumption


  • Ras-I mine expansion to reduce high grade limestone consumption
  • Trial for diesel additives to reduce diesel consumption in mining
  • New road identified from Ras-I to plant to reduce lead distance of upto 4 km and reduce transport cost
  • Prepared plan for procurement of high-grade mines within a 50-60 km radius around the plant


  • Close monitoring to reduce diesel and lead consumption, and trial of Thermol-D


  • Fatigue monitoring system for operators
  • Proximity sensor in heavy earth-moving machinery with 20 meter alert system
  • Haul road maintained with compactors and graders
  • Dust suppression on haul roads, crawler-mounted equipment
  • In-built water sprinklers and dust extractors in drilling machines
  • Reverse cameras and alarms in dumpers

Ecosystem protection

  • Excavated soil used for cultivation/pasture land development
  • Dump slopes designed for stability
  • Waste disposal as per approved mining plan
  • Operating sites do not encroach into territories of indigenous people
  • Approved mine closure and rehabilitation plans

Constant monitoring

  • Blast monitoring
  • Vibration measurement after each blast
  • Vibration measurement as per approved standards
  • Technology-based mining and demand mapping
  • GIS*-GPS* based blasting and production
  • Prompt Gamma Neutron Activation Analysis (PGNAA)-based crushed Rom analysis

Efficient techniques

  • Eco-friendly blast-free surface mining (Ambujanagar
    • Replaces blasting and drilling
    • Eliminates ground vibration
    • Noise minimisation
  • Controlled blasting
    • Minimal fly rocks and vibration
    • Safe extraneous electric environment
    • High-precision electronic detonators