Ambuja Cements to Invest Rs 1,600 Crore in Bihar Cement Grinding Unit
Ambuja Cements Limited, part of the Adani Group's diversified portfolio, has announced a significant investment in Bihar. The company revealed plans to set up a cement grinding unit in Warisaliganj, marking the largest investment by a cement industry player in the state. This standalone facility, with an overall capacity of 6 million tonnes per annum (MTPA), will be established at a cost of approximately Rs 1,600 crore.
The project will be implemented in three phases, with the first phase set to have a capacity of 2.4 MTPA and an investment of Rs 1,100 crore. This phase is targeted for commissioning by December 2025. The company has also made provisions for future expansion, which will be undertaken at a lower capital expenditure. The plant is strategically located in Mosama village, Tehsil Warisaliganj, District Nawada, Bihar. It boasts excellent connectivity, being just 1 km from Warisaliganj railway station and 500 meters from State Highway 83.
Ambuja Cements emphasized that this project aligns with the infrastructure priorities outlined in the recent Union Budget. "The project will meet the growing infrastructure needs of Bihar, aligning with priorities outlined in the recent Union Budget," the company stated.
The investment is anticipated to have a substantial economic impact on Bihar. Chief Minister Nitish Kumar, speaking at the foundation stone-laying ceremony organized by the Bihar Industrial Area Development Authority (BIADA), highlighted the project's significance. "This investment by the Adani Group is a testament to Bihar’s growth potential and our commitment to fostering sustainable development for the people of Bihar," he said.
The project is expected to contribute approximately Rs 250 crore per year to the state's fiscal revenue and create 250 direct jobs and 1,000 indirect jobs. The ceremony saw the presence of several dignitaries, including Bihar Deputy Chief Ministers Samrat Choudhary and Vijay Kumar Sinha, and Industry Minister Nitish Mishra.
Pranav Adani, Managing Director (Agro, Oil & Gas) and Director of Adani Enterprises Limited, underscored the strategic alignment of this investment with the state government's development programs and the company's growth plans. "The cement industry is witnessing healthy volumes due to the government's infrastructure thrust, and Ambuja Cements is well-positioned to support sustainable infrastructure development in the country," he noted.
"We look forward to collaborating with the state government, authorities, and local communities on this and future projects. State government's support in fast-tracking and provisioning of all permits has made this landmark investment possible in a short time," Mr. Adani added.
The Bihar Industrial Area Development Authority (BIADA) has already allotted 67.90 acres of land for the Warisaliganj cement unit, with environmental clearance obtained for the project. The unit is expected to be operational by December 2025.
In addition to this, Ambuja Cements has been allotted 26.60 acres of land by BIADA for another cement unit in the industrial area of Mahbal, Motipur, Muzaffarpur. Environmental clearance for this project is currently under process, and work is expected to commence shortly.
This investment in Bihar is part of a broader expansion strategy by the Adani Group. Recently, the group announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, adding 14 MTPA to its capacity, taking it to 93 MTPA. The group aims to achieve a capacity of 140 MTPA by FY28, expanding both organically and through acquisitions. Through Ambuja, Adani also controls ACC Ltd and acquired MyHome Industries and Sanghi Industries in 2023.
Ambuja Cements' significant investment in Bihar highlights the company's commitment to supporting India's infrastructure growth and aligns with the government's development priorities. This project is set to play a crucial role in meeting the region's growing infrastructure needs, providing economic benefits, and creating job opportunities for the local population.