Ambuja Cements to invest Rs 6,000 crore in renewable power projects; stock rises

Ambuja shares edged higher on Monday, December 18, extending gains for the fourth consecutive session. The stock drew investors' interest after the cement and building material company announced that it would power 60 per cent of its production with green power and would invest Rs 6,000 crore for the same.

"In a monumental stride towards a greener future, the company has committed a significant investment of Rs 6,000 crore in renewable power projects, targeting a capacity of 1,000 MW," the filing read.

At around 1:46 pm, shares of Ambuja Cements traded 0.66 per cent, or Rs 3.45, higher on the BSE at Rs 525.8 apiece. The market capitalisation of the company stood at Rs 1,04,405.23 crore at around the same time.

As per the filing, the investment encompasses a diverse portfolio of solar and wind power projects positioned across Gujarat and Rajasthan.

The lineup includes a 600 MW solar power project, a 150 MW wind power project in Gujarat, and a 250 MW solar power project in Rajasthan.

As per the filing, with the lower cost of generation from green power, the power cost will come down from Rs 6.46 per kWh to Rs 5.16 per kWh.

A reduction of Rs 1.30 per kWh (20 per cent), which translates into Rs 90 PMT of cement for a targeted capacity of 140 MTPA by FY 2028, accelerating the company’s environmental, social, and governance (ESG) targets.

These initiatives will help Ambuja achieve the leading share of green power amongst its peers, reaching 60 per cent of the planned capacity of 140 MTPA from the current 19 per cent, the company added.

Ambuja Cements share price: Past performance 

In 2023 so far, Ambuja Cements shares have gained 0.16 per cent against the Nifty 50's rise of over 18 per cent. 

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