Ambuja Cements plans to allocate Rs 6,000 crore for investments in renewable power projects.

Indian construction materials manufacturer Ambuja Cements has unveiled plans to invest Rs 6,000 crore (approximately $723 million) in renewable power projects, as announced on Monday. The funding for this initiative will be sourced internally. Ambuja Cements aims to achieve a capacity of 1,000 megawatts (MW) through the implementation of solar and wind power projects in the regions of Gujarat and Rajasthan. However, specific details regarding the funding process were not disclosed in the exchange filing.

The company, which is owned by the Adani Group, outlined its goal of attaining the targeted capacity from solar and wind power projects by the fiscal year 2026. This expansion is set to augment Ambuja Cements' current capacity of 84 MW. The renewable power projects are anticipated to raise the company's overall green power capacity from the existing 19 percent to an impressive 60 percent.

In addition to this ambitious renewable energy initiative, Ambuja Cements recently made a strategic move by acquiring a majority stake in Sanghi Industries for Rs 5,185 crore. This acquisition marks a significant development in the company's expansion and consolidation efforts within the construction materials sector.

Furthermore, Ambuja Cements' investment in renewable power projects aligns with the broader industry trends focused on sustainable and eco-friendly practices. The company's commitment to increasing its green power capacity reflects a growing emphasis on environmental responsibility and renewable energy adoption within the construction materials sector.

In a broader context, the move comes amid increasing interest and investments in the renewable energy sector by companies across various industries in India, showcasing a shift towards cleaner and more sustainable business practices. Ambuja Cements' significant investment underscores its commitment to contributing to the country's renewable energy landscape while enhancing its own operational efficiency and sustainability.