This large-cap Adani stock to invest Rs 6,000 crore to power 60 per cent of its production with Green Power 1,000 MW Renewable Power; a multibagger stock to watch!

The company boasts a remarkable track record of generous dividend payouts, historically distributing a whopping 71.8 per cent of its profits to shareholders.

Ambuja Cements Limited, the cement and construction material company of the Adani Group, has announced an audacious objective to cement its place as a global leader in sustainable cement production. In a huge step towards a greener future, the Company has committed Rs. 6,000 crores in renewable power projects with a capacity of 1,000 MW.

This game-changing venture includes a varied portfolio of solar and wind power projects strategically located throughout Gujarat and Rajasthan. In Gujarat, there will be a 600 MW solar power plant, a 150 MW wind power project, and a 250 MW solar power project. This will be accomplished by FY 2026 (200 MW by March'24), in addition to the current 84 MW of Solar and Wind Power.

The investment not only illustrates our commitment to environmental sustainability, but it also provides significant economic benefits to Ambuja's planned 140 MPTA capacity. With decreased generating costs from green power, power costs will fall from Rs.6.46 per kWh to Rs.5.16 per kWh. A reduction of Rs. 1.30 per kWh (20%), equating to Rs. 90 per PMT of cement for a targeted capacity of 140 MTPA by FY 2028, advancing the Company's ESG ambitions. Furthermore, green power will help to boost the supply of green cement, allowing the user industry (infrastructure and housing) to go green.

Ambuja Cements is also increasing its Waste Heat Recovery Systems (WHRS) capacity from 103 MW to 397 MW over a 5-year period (134 MW by March'24), which will lower power costs even further. These activities are critical components of a larger strategy that will assist Ambuja achieve the leadership proportion of Green Power among its peers, increasing from 19% to 60% for the anticipated capacity of 140 MTPA.

Management Commentary

Mr. Ajay Kapur, CEO, Cement Business, said, "This strategic investment reaffirms our steadfast commitment to sustainable practices. 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-carbonization and greener future and this helps us become competitive and sustainable. The adjacencies within the Group will further catalyze benefit realization. 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."

With this monumental leap, Ambuja has firmly established itself as a trailblazer in the cement industry, setting the stage for a more sustainable future.

It is a Large-Cap multibagger stock with a market capitalization of Rs 1,04,385 crore, currently trading at Rs 526. In a refreshing turn of events, the company has shed its debt burden and emerged as a lean, nearly debt-free entity. To top it off, the company boasts a remarkable track record of generous dividend payouts, historically distributing a whopping 71.8 per cent of its profits to shareholders. The stock has generated mutibagger returns of 2,938.13 per cent in the decade. 

About Company

Ambuja Cements Ltd (Founded in 1993) is one of India’s leading cement manufacturers, with a presence in 80 countries, and a focus on cement, aggregate and concrete.

Disclaimer: The article is for informational purposes only and not investment advice.