Ambuja Cements breaks ground on Guna grinding unit in central India

Ambuja Cements, part of the Adani Group, has begun construction of a new cement grinding unit in Guna, Madhya Pradesh, in line with its ongoing expansion in central India, according to a company May 11 LinkedIn post.

The project will involve an investment of about Rupees 10.6 billion ($124 million) and is expected to strengthen the company's regional supply network while supporting rising infrastructure demand across central India. The grinding unit will be developed in phases, with a planned capacity of about 2.5 million-4 million metric tons/year.

Speaking at the groundbreaking ceremony, Pranav Adani, managing director of Adani Enterprises, said the project represented "not merely the commencement of a single project, but a day that will give a new direction to the development of Madhya Pradesh."

Several Asia-based traders said that Indian cement producers have continued announcing expansion projects despite persistent fuel and freight cost pressures, supported by expectations of sustained infrastructure spending and housing demand growth.

"India's cement demand is expected to continue growing over the longer term, supported by population growth and rising housing and infrastructure requirements," a Vietnam-based producer said.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $38.5/mt on May 7, up from $38/mt the previous week. Platts also assessed cement clinker FOB Vietnam at $33.5/mt, up from $33/mt FOB the previous week.