The cement industry in India is growing rapidly, especially due to increased demand in infrastructure and housing sectors. UltraTech and Ambuja are two of the biggest and most trusted names in this sector. Both companies are quite different from each other in terms of their business model, production capacity, and growth strategy.
In this blog, we will compare UltraTech Vs Ambuja based on business model, financials, and future plans to understand which company may be a better choice for investors.
Company Overview : UltraTech Cement
UltraTech Cement, which is part of the Aditya Birla Group, is one of the largest cement companies in India and one of the top cement companies in the world. It was started in 1983 and since then it has achieved many big milestones. Currently, UltraTech has a total production capacity of 152.7 million tonnes per annum, which includes grey cement, white cement and ready mix concrete (RMC). In FY25, the company had sales of around 119 MTPA, which shows its growth.
It has more than 60 manufacturing locations across the country including plants, grinding units and bulk terminals. Recently two new greenfield projects have been started in Chandigarh and Tamil Nadu, which has further increased its capacity. The company aims to achieve the target of 200 MTPA by 2027, for which UltraTech has made acquisitions of companies such as Kesoram and India Cements. UltraTech exports cement not only in India but also abroad. It has a presence in the Middle East and other Asian countries.
Business Model of UltraTech Cement
- Earnings from different products : UltraTech’s business is not limited to manufacturing grey cement. The company also manufactures and sells white cement (Birla White) and ready-mix concrete (RMC). These different products allow UltraTech to connect with every type of customer – be it large infrastructure projects or domestic construction.
- Strong network spread across the country : UltraTech has more than 60 manufacturing units in different parts of the country and a huge distributor network. This is the reason why its cement reaches easily from small villages to big cities.
- Entry in new sector : Apart from cement, the company has now also entered the business of wires and cables. An investment of about ₹ 1800 crore has been made for this and this new step will further accelerate the growth of the company in the coming time.
- Focus on sustainability : UltraTech is also serious about the environment. The company is now meeting more than 46% of its electricity needs from green energy, which includes 1,021 MW renewable energy capacity and 342 MW of Waste Heat Recovery Systems (WHRS).
- Expansion through acquisitions : UltraTech has recently acquired brands like Kesoram and India Cements. These acquisitions will increase the company’s production capacity and it is set to take it to 200 MTPA by 2027.
Read Also: Ultratech Cement Case Study
Company Overview : Ambuja Cement
Ambuja Cement started in Gujarat in 1983. Earlier it was a company of Holcim, but in 2022 Adani Group bought it. Since then Ambuja’s growth has become very fast. Now it has become a big part of Adani’s cement business. The company has 6 big plants, 18 grinding units and 79 Ready-Mix Concrete (RMC) plants in the country. Currently its production capacity is around 77 million tonnes per annum, but Ambuja is preparing to increase it to 140 million tonnes in the next few years.
In the last quarter, Ambuja’s earnings were above ₹ 8,400 crore and profit reached close to ₹ 2,600 crore, which was double from last year. The company has also bought big companies like Sanghi Industries, Penna Cement and Orient Cement, which has strengthened its network. Ambuja aims to gain 20% market share in the coming years.
Business Model of Ambuja Cement
- Products and Services : Ambuja Cement primarily manufactures grey cement, as well as supplies Ready-Mix Concrete (RMC) and building materials. Its products are used for everything from small houses to large infrastructure projects such as roads, bridges, and buildings. The company is known for its quality and durability.
- Logistics : The company has its own ports, which ensures cheap and quick delivery of raw materials. This logistics network helps Ambuja deliver its products in a quick and cost-effective manner across the country.
- Expansion and Acquisitions : Along with the Adani Group, Ambuja has acquired companies like Sanghi, Penna and Orient Cement. This has increased its manufacturing capacity and now it has a strong position in India.
- Green Energy : Ambuja gets 21.5% of its energy from solar and Waste Heat Recovery. The company wants to increase this percentage to 60%, so that there is less harm to the environment.
- Technology : The company is investing in digital technology and automation, which is making manufacturing processes faster and cheaper and quality of its products better.
Comparative Analysis: UltraTech Vs Ambuja
| Particulars | UltraTech Cement | Ambuja Cements |
|---|---|---|
| Current Price (₹) | 12,072 | 577 |
| Market Cap (₹ Crores) | 3,55,747 | 1,42,011 |
| 52-W High (₹) | 12,341 | 707 |
| 52-W Low (₹) | 10,048 | 453 |
| FII Holdings as of March 2025 | 15.71% | 8.60% |
| DII Holdings (as of March 2025) | 16.85% | 17.30% |
| Book Value (₹) | 2,399 | 217 |
| PE Ratio | 58.2 | 34.3 |
Financial Statements Analysis
| Particulars | UltraTech Cement | Ambuja Cements |
|---|---|---|
| Total Income | 76,699 | 37,699 |
| Total Expenses | 67,510 | 31,573 |
| EBIT | 9,189 | 6,125 |
| Net Profit | 6,050 | 5,145 |
Balance Sheet Comparison
| Particulars | UltraTech Cement | Ambuja Cements |
|---|---|---|
| Reserves & Surplus | 70,411 | 52,950 |
| Current Liabilities | 32,364 | 13,845 |
| Current Assets | 23,737 | 19,717 |
Cash Flow Statement Comparison
| Particulars | UltraTech Cement | Ambuja Cements |
|---|---|---|
| Cash Flow from Operating Activities | 10,673 | 2,237 |
| Cash Flow from Investing Activities | -16,504 | -7,531 |
| Cash Flow from Financing Activities | 5,075 | 5,592 |
Key Performance Ratios (KPIs)
| Particulars | UltraTech Cement | Ambuja Cements |
|---|---|---|
| Operating Profit Margin (%) | 12.22 | 17.53 |
| Net Profit Margin (%) | 7.96 | 14.68 |
| ROE (%) | 8.54 | 7.79 |
| ROCE (%) | 9.16 | 9.16 |
| Debt to Equity (x) | 0.33 | 0.00 |
Read Also: List of Best Cement Stocks in India
Who is better: UltraTech Or Ambuja?
UltraTech and Ambuja, both are big names in the cement industry of our country. Talking about UltraTech, its biggest strength is its huge network. Its plants are present in almost every part of the country, so its production is also very high. The company has also invested well in technology and green energy, through which it is trying to make its production process more sustainable and modern.
On the other hand, Ambuja Cement has its own identity. This company places a lot of emphasis on quality and is very smart in logistics. After joining with Adani Group, Ambuja has strengthened its hold especially in South and West India. Ambuja’s policies regarding environmental protection are also clear and effective.
It is difficult to say who is better, because both have a lot of strength in their respective fields. UltraTech focuses on large-scale production and market coverage, while Ambuja has focused on its energy saving technology and regional expansion. The presence and work of both is very important in the development of our country’s infrastructure.
Read Also: HCL Vs Infosys: Which is Better?
Future plans of UltraTech Cement
- Expansion and capex plans : UltraTech Cement is planning to increase its production capacity to around 200 million tonnes in the coming 3-5 years. For this, the company has made large-scale capital expenditure (Capex) plans, which will be spent mainly on setting up new plants and increasing the capacity of existing plants. Apart from India, the company is also focusing on expansion abroad, especially in the South Asian market.
- Focus on Green Cement and ESG : UltraTech has made environmental protection its priority. The company is rapidly adopting green cement and carbon footprint reducing technologies. It is increasing investment in Waste Heat Recovery Systems, Solar Energy and Clean Technologies. UltraTech is also working on making its business more sustainable and responsible under ESG (Environmental, Social, Governance).
- Risks and Opportunities : UltraTech may face increased raw material prices and regulatory challenges. But the growing demand for infrastructure in the country and government projects will also provide a good opportunity to the company. Investment in technology and green innovation will make UltraTech stronger in the future.
Future plans of Ambuja Cements
- Capex and Expansion Plans : Ambuja Cement aims to increase its capacity to around 140 million tonnes by FY28. Under the Adani Group, the company is setting up new plants on a large scale and expanding regionally through acquisitions. The company is gaining ground in South and West India, especially with Sanghi, Penna and Orient Cement.
- Green Energy and ESG Focus : Ambuja has around 21.5% of its energy from Solar and Waste Heat Recovery and plans to increase it to 60% by FY28. The company is a pioneer in environmental protection and strictly follows ESG standards. These steps are helping the company to build a low carbon emission brand.
- Risks and Opportunities : Changes in raw material prices and logistics costs can be a big threat for Ambuja. Nevertheless, Adani’s strong network and acquisition strategy will give the company an opportunity to expand into new markets. Investments in green technologies will make Ambuja competitive in the future.
Read Also: Top 10 Cement Penny Stocks in India Below ₹50
Conclusion
Both UltraTech and Ambuja are making steady progress based on their respective business plans. UltraTech is focused on increasing production capacity and adopting the latest technologies, while Ambuja is prioritizing environmental protection and regional expansion. Each company has strengthened its business operations with different strategies. Both are playing an important role in the economic growth of India and will continue to be crucial in meeting the increasing demand of cement in the future.
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Frequently Asked Questions (FAQs)
What makes UltraTech different from Ambuja?
UltraTech focuses on mass production and technology, while Ambuja focuses more on quality and environment.
Which company has a better presence in India?
UltraTech has a larger network, but Ambuja is a strong player particularly in South and West India.
Are UltraTech and Ambuja focusing on sustainability?
Both companies are focusing on green energy and environmental protection through various initiatives.
Which company is part of the Adani Group?
Ambuja Cement now comes under Adani Group.
Are both companies expanding their production capacity?
Yes, both UltraTech and Ambuja are investing to increase their capacity.
