Ambuja Cements Unleashes Rs 6,000 Crore Green Power Push, Targets 1,000 MW Renewable Capacity by 2026

Ambuja Cements, owned by the Adani Group, is gearing up for a significant green initiative with a whopping investment of Rs 6,000 crore in renewable power projects, as per an official exchange filing made by the company on December 18.

Choosing to finance the venture internally, Ambuja Cements has set its sights on achieving a capacity of 1,000 megawatts (MW) through solar and wind power projects in the states of Gujarat and Rajasthan. The ambitious plan comprises a 600 MW Solar Power project and a 150 MW Wind Power project in Gujarat, along with a 250 MW Solar Power project in Rajasthan.

The company is targeting to reach this capacity milestone from solar and wind power projects by fiscal 2026, thereby expanding its current capacity of 84 MW. This strategic move is poised to elevate Ambuja Cements’ overall green capacity from the existing 19% to an impressive 60%.

In addition to the environmental benefits, the company anticipates a positive financial impact. With the lower cost of generation from green power, Ambuja Cements foresees a decrease in power costs from Rs. 6.46 per kWh to Rs. 5.16 per kWh. This 20% reduction, equivalent to Rs. 1.30 per kWh, is expected to translate into a noteworthy Rs. 90 per metric ton of cement by the fiscal year 2028, according to the official statement.

This move follows Ambuja Cements’ recent majority stake acquisition in Sanghi Industries for Rs 5,185 crore in early December, marking a series of strategic initiatives for the company.