Birla, Adani to infuse ₹50,000-crore capex in two years for cement dominance

India’s cement industry is entering a defining phase, with two of the country’s most powerful business houses—the Aditya Birla Group and the Adani Group—locked in an aggressive race to dominate the sector. At the centre of this contest stands Birla’s UltraTech Cement on one side, and the combined force of Adani’s Ambuja Cements and ACC on the other.

Both groups have lined up fresh cement capacity additions of more than 40 million tonne (MT) each over the next two years, in what industry executives describe as one of the largest private capital deployment cycles in the sector. Analysts estimate the combined investment could touch nearly ₹50,000 crore, underscoring the intensity of competition in India’s fast-growing cement market.

The Birla companies enjoy scale leadership in the market at present. UltraTech crossed the landmark 200MT annual production capacity in April, reinforcing its position as India’s largest cement producer. However, the Adani camp is also moving fast. Ambuja Cements, along with subsidiaries ACC, Sanghi, Orient, and Penna, has outlined an ambitious roadmap to scale capacity to 155MT by 2028 from 109MT at present.

By September itself, Ambuja expects its total capacity to reach 119MT, supported by new grinding capacities at Dahej (1.2MT), Bhatinda (1.2MT), Salai Banwa (2.4MT), Kalamboli (1MT), Jodhpur (2MT), and Warisaliganj (2.4MT), alongside an additional clinker unit at Maratha (4 MTPA).

The Adani Group is also preparing for a more consolidated operating structure. A planned amalgamation of ACC with Ambuja in FY27 is expected to create a stronger, integrated platform as it intensifies competition with UltraTech. Earlier, Sanghi and Penna had already been merged with Ambuja, creating a broader manufacturing and distribution base.

UltraTech, meanwhile, is not slowing down. The company has laid out a clear expansion roadmap that will take its cement capacity to 240.76MT. According to the company, “Commercial production from the new capacities is expected to go fully on stream in a phased manner, starting from FY28.”

In FY27 alone, UltraTech plans to commission 15.9MT of new capacities through greenfield projects in Andhra Pradesh and Uttar Pradesh, along with brownfield expansions in Jharkhand and Rajasthan. Additional greenfield projects in Madhya Pradesh, Bihar, and Uttar Pradesh are lined up for FY28, with another 29.8MT of capacity addition planned.

Behind this expansion lies strong financial momentum. Ambuja Cements reported a 6.5% rise in consolidated profit to ₹5,637 crore in FY26, while consolidated total income rose 9.2% to ₹41,490 crore.

“We remain focused on stabilising new capacities, strengthening operating efficiency and improving asset utilisation, supported by a debt-free balance sheet, strong liquidity, and the highest credit ratings,” said Vinod Bahety, CEO of Ambuja Cements.

UltraTech delivered even stronger numbers. The company posted a record consolidated profit of ₹8,166 crore in FY26, up 35.1% year-on-year, while consolidated revenue rose 16.5% to ₹88,511 crore. K.C. Jhanwar, MD of UltraTech, described FY26 as “a year of extraordinary execution,” pointing to the company’s early achievement of the 200MT milestone.

UltraTech’s margin strength was supported by strategic acquisitions. Its ₹7,100-crore acquisition of India Cements, completed in December 2024, and the merger of Kesoram Industries’ cement business in March 2025, significantly strengthened its southern market presence while improving freight economics.

Adani’s cement ambitions have also been acquisition-led. Ambuja’s capacity crossed the 100MT mark after a series of strategic deals, including the acquisition of Sanghi Industries in August 2023 for about ₹5,000 crore, Penna Cement Industries in June 2024 for ₹10,422 crore, and Orient Cement in October 2024 for roughly ₹8,100 crore. These acquisitions expanded Ambuja’s footprint across western, southern, and eastern India, improving utilisation levels and driving volume growth.

With government infrastructure spending remaining strong and housing demand stable, both groups are betting that India’s next construction cycle will reward scale, efficiency, and speed.