Ambuja's volume-to-value shift may take time to pay off

Ambuja expects to meet its interim capacity addition target of 117 million tonnes per annum (mtpa) over the next three to four months. However, further expansion toward the 155 mtpa will be pursued only after utilization improves to 80-85%.

- Harshajethimalani [e-mail]

Ambuja Cements, which has been on a mergers and acquisitions spree, appears to be taking a leaf out of rival Shree Cement’s playbook.

Analysts who visited Ambuja’s Sanghipuram plant in Gujarat said the management indicated a shift toward a value-over-volume strategy, prioritising margin-accretive growth rather than rapid capacity additions that risk running at low utilization.

This plant accounts for about 6% of the capacity.