Adani Group To Invest Rs 1,600 Crore In Bihar, Foundation Stone Laid For Ambuja Cements Factory In Nawada

Adani Group invests Rs 1,600 crore in Bihar to set up a 6 MTPA cement grinding unit, creating jobs and contributing to the state’s economy.

In a significant move that underscores Bihar’s growing economic potential, the Adani Group has announced a massive Rs 1,600 crore investment in the state. The foundation stone for the group’s subsidiary, Ambuja Cements, was laid in Nawada’s Warisaliganj, marking the company’s first venture in Bihar.

This investment, which will establish a 6 MTPA cement grinding unit, is set to create numerous job opportunities and contribute substantially to the local economy. As the state government continues to prioritize sustainable development, this project aligns with Bihar’s growth plans and the recent Union Budget’s focus on infrastructure development.

Adani Group’s Ambitious Investment in Bihar

The Adani Group, one of India’s largest conglomerates, has firmly established its presence in Bihar with this landmark investment. The Rs 1,600 crore project will be implemented in three phases, with the first phase of 2.4 MTPA at an investment of Rs 1,100 crore targeted for completion by December 2025.

The cement grinding unit, which will be a standalone facility, is strategically located in Mosama village, Tehsil Warisaliganj, District Nawada. The site’s excellent connectivity via road and rail networks, along with the state government’s support in fast-tracking permits, has made this investment possible in a short time.

read also: Deepinder Goyal Net Worth in Rupees

Significance for Bihar’s Economy and Development

This investment by the Adani Group is a testament to Bihar’s growth potential and the state government’s commitment to fostering sustainable development for its people. The project is expected to contribute approximately Rs 250 crore per year to Bihar’s fiscal revenue and create 250 direct jobs and 1,000 indirect jobs.

The cement grinding unit will play a crucial role in meeting the growing infrastructure needs of Bihar, aligning with the priorities outlined in the recent Union Budget. The government’s proposal for a total outlay of over Rs 60,000 crore for various projects, including funding for three expressways, a power plant, heritage corridors, new airports, and sports infrastructure, underscores the state’s focus on development.

Adani Group’s Commitment to Bihar

The Adani Group has expressed its gratitude to the Bihar government for the support received for this project. Pranav Adani, Managing Director (Agro, Oil & Gas) and Director of Adani Enterprises Limited, emphasized the company’s eagerness to collaborate with the state government, authorities, and local communities on this and future projects.

Karan Adani, another key figure in the group, echoed these sentiments, stating, “We are excited to announce a landmark 1,600 crore investment in Bihar to set up a 6 MTPA Cement Grinding Unit in Warisaliganj, creating significant job opportunities & contributing to the local economy. Adani Cement is well-positioned to support sustainable infrastructure development in Bihar and across.”

Ambuja Cements’ Expansion in Bihar

Ambuja Cements, a subsidiary of the Adani Group, has taken a significant step forward with this investment in Bihar. The company’s foray into the state marks a strategic move to expand its presence and contribute to the region’s growth.

The Warisaliganj Cement Grinding Unit will be the first venture of Ambuja Cements in Bihar, showcasing the group’s confidence in the state’s potential. With an overall capacity of 6 MTPA, the project will be a game-changer in the cement industry, making Adani Group the largest investment in the state by a cement industry player.

Collaboration with the Bihar Government

The foundation stone laying ceremony for the Ambuja Cements factory was attended by Chief Minister Nitish Kumar, who praised the Adani Group’s investment as a testament to Bihar’s growth potential and the state’s commitment to sustainable development.

The Bihar Industrial Area Development Authority (BIADA), the state agency, has already allotted 67.90 acres of land for this cement unit, and environmental clearance has been obtained for work on the site[3]. The state government’s support in fast-tracking permits and provisioning of all necessary approvals has been crucial in making this investment possible in a short time.

Adani Group’s Expansion Plans

The Adani Group has been aggressively expanding its cement business in recent years. The acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore added 14 MTPA to the group’s capacity, taking it to 93 MTPA.

The group aims to achieve a 140 MTPA capacity by FY28 and is expanding organically through capacity expansion at existing units and acquisitions. Through Ambuja Cements, the group also controls ACC Ltd and has acquired MyHome Industries and Sanghi Industries in 2023.

Conclusion

The Adani Group’s Rs 1,600 crore investment in Bihar for the Ambuja Cements factory is a game-changing event that will have far-reaching implications for the state’s economy and development. This project, which marks the group’s first venture in Bihar, is set to create numerous job opportunities, contribute to the local economy, and support the state’s sustainable infrastructure development plans.

The collaboration between the Adani Group and the Bihar government showcases the state’s potential and the commitment of both parties to fostering growth and progress. As the cement grinding unit takes shape, it will undoubtedly serve as a catalyst for further investments and economic prosperity in the region.