According to the cement major, it is planning to set up a 600 MW solar power project and 150 MW wind power project, respectively, in Gujarat and a 250 MW solar power project in Rajasthan. "This will be achieved by FY2026 (200 MW by March 2024) in addition to the existing 84 MW of solar & wind power," the company says in a regulatory filing.

"The investment not only demonstrates our commitment to environmental sustainability but also promises compelling economic advantages to Ambuja’s planned larger capacity of 140 MPTA. With the lower cost of generation from green power, the power cost will come down from ₹6.46 per kWh to ₹5.16 per kWh. A reduction of ₹1.30 per kWh (20%), which translates into ₹90 PMT of cement for a targeted capacity of 140 MTPA by FY 2028, accelerating the Company’s ESG targets. Additionally, green power will assist in enabling an increased supply of green cement, making it possible for the user industry (infrastructure and housing) to go green," it adds.

Meanwhile, the company is also enhancing its waste heat recovery systems (WHRS) capacity from the current 103 MW to 397 MW over 5 years (134 MW by March 2024), as per the company. Ambuja Cements claims this will reduce the power cost, and will help the company achieve to reach 60% of the planned capacity of 140 MTPA by March 2024, from the existing capacity of 19%.

"We are not just aiming for a substantial increase in green power capacity but setting the stage for a transformative shift in the cement industry. They align not only with our growth trajectory but also with the national objective of de-carbonisation and a greener future and this helps us become competitive and sustainable. The adjacencies within the group will further catalyse benefit realisation. With all requisite approvals in place, we are on an accelerated path to not just meet but exceed our committed ESG targets well before our initial timelines," says Ajay Kapur, CEO, Cement Business.

In the July to September quarter of FY24, the company's net profit surged multi-fold to ₹987 crore against ₹51 crore in the same period last year. The company revenue increased 4% to ₹7,424 crore against ₹7,131 crore in the corresponding period of the previous year.

Ambuja Cements Stocks

Ambuja Cements to invest ₹6,000 cr in renewable energy projects; stock up 2%