New Delhi, Adani Group firm Ambuja Cements expects demand growth to moderate to around 5 per cent in the domestic market this fiscal from 6.5-7.5 per cent in FY26.
The Adani group firm, which has acquired several cement companies in the last few years, said capacity additions are being done in a phased manner to meet project pipelines and regional demand, ensuring timely offtake and efficient capital deployment.
"The company expects India's cement industry demand to grow by around 5 per cent in FY 2026-27, supported by sustained demand from the housing and infrastructure sectors, following a 6.5-7.5 per cent increase in FY 2025-26," said the second largest cement maker in its annual report.
However, Ambuja Cement Ltd (ACL) said industry demand is expected to continue benefiting from urban housing projects, rural development initiatives and ongoing investments in roads, railways and other infrastructure projects.
"Furthermore, a reduction in GST on cement, coupled with the government's continued emphasis on infrastructure spending, is expected to support demand momentum through FY2026-27, despite elevated input costs arising from disruptions to global supply chains," ACL said.
To support demand momentum, leading cement makers are continuing to expand capacities through both organic and inorganic routes to strengthen their market positions and meet future requirements, it added.
Besides, large players are also actively managing cost pressures from higher coal, petcoke and freight expenses, as well as the impact of a depreciating rupee on imported inputs.
ACL has sharpened its focus on cost optimisation, operational efficiency and disciplined capital allocation.
"The company is pursuing a balanced growth strategy of greenfield and brownfield expansions to strengthen market presence across the country," it said.
Ambuja Cements has increased its installed cement capacity to 109 million tonnes per annum (MTPA) in FY 2025-26 from 89 MTPA a year earlier, driven by the integration of strategic acquisitions and consistent project execution.
The company said it remains on track to expand capacity to 119 MTPA by FY 2026-27 as it seeks to strengthen its position in the country's growing cement market.
"With a current capacity of 109 MTPA and a targeted capacity of 119 MTPA by FY 2026-27, Ambuja continues to focus on capacity utilisation, with a near-term emphasis on stabilisation," the company said.
Besides, ACL has also merged Sanghi Industries and Penna Cement Industries into the company as part of the consolidation of the cement business under a unified operating structure, 'One Cement Platform'.
"ACL is progressing its 'One Cement Platform' with the announcement of the amalgamation of ACC and Orient Cement with ACL, shaping a unified, pan-India building materials leader with global competitiveness," it said, adding that this strategic consolidation aims at strengthening operational and financial synergies while simplifying the corporate structure.
Adani Group, a new entrant in the cement sector, jumped into the segment in September 2022, after acquiring controlling stakes in ACL from Swiss firm Holcim for $6.4 billion (about Rs 51,000 crore).
Later, Ambuja Cements, which owns a 51 per cent stake in ACC Ltd, pursued inorganic growth, acquiring small companies such as Hyderabad-based Penna Cement, Saurastra-based Sanghi Industries and Orient Cement from the CK Birla group.
The Indian cement market is led by Aditya Birla Group firm UltraTech Cement Ltd, which has a consolidated capacity of over 200 MTPA.
