Internal accruals to fund Adani cement expansion

ADANI GROUP IS not looking to raise any external funding to double manufacturing capacity of its cement firms, Ambuja Cements and ACC, to 140 million tonne by FY28 as the group has "sufficient" internal accruals.

- RAJESH KURUP & KISHOR KADAM

Further, the group has outlined a road map for cost reductions to reach its goal of becoming the country's most profitable cement manufacturer.

"The group is not putting the expansion of the cement companies on hold, nor [does it have] any plans to raise external debt or equity, and its vision for FY28 is on track. The expansion plans for the cement companies are on track and the group would fund these through internal accruals; the first phase is slated to commence anytime now," a source close to the development said.

During the past six years, Ambuja Cements and ACC together had an average cash and cash equivalent of ₹8,394 crore and ₹3,194 crore of net cash flow from operations. For the year ended December 2022, the companies' cash and cash equivalent stood at ₹9,454 crore, an increase from ₹5,874 crore recorded in calendar year 2017, but a dip from ₹11,358 crore posted in 2021.