#### **Overview** Orient Cement Limited (OCL), now a wholly integrated member of **Ambuja Cements** and part of the **Adani Group** following its acquisition in April 2025, is a mid-sized, technically advanced Indian cement manufacturer with a strong focus on **sustainability, premiumization, and digital transformation**. As of November 2025, OCL operates as a key growth engine within Adani Cement’s portfolio, contributing significantly to its national footprint, capacity expansion, and low-carbon ambitions. With a current **cement production capacity of 8.5 million metric tons per annum (MTPA)** and **clinker capacity of 5.5 MTPA**, OCL serves key markets across Maharashtra, Karnataka, Telangana, Andhra Pradesh, Madhya Pradesh, and South Gujarat. Backed by robust infrastructure—including **captive power, Waste Heat Recovery Systems (WHRS), and Alternative Fuels and Raw Materials (AFR) capabilities**—the company is strategically positioned for **profitable, sustainable, and scalable growth**. --- #### **Strategic Developments (as of Nov 2025)** ##### **1. Integration with Adani Group & Ambuja Cements** - Following the **April 2025 acquisition** by Ambuja Cements (Adani Group) of a **46.66% stake**, OCL has been fully integrated into the group’s operations. - This acquisition adds **16.6 MTPA of cement capacity** (8.5 MTPA operational, 8.1 MTPA ready for execution) and strengthens Ambuja’s path to **140–155 MTPA by FY28**. - OCL contributes critical assets: - **95 MW captive power** - **33 MW renewable energy capacity** - **10 MW WHRS** - **Limestone mining lease in Chittorgarh, Rajasthan**, enabling **6 MTPA greenfield capacity potential** in North India. ##### **2. Decarbonization Leadership** - Adani Cement and **Coolbrook** have partnered to deploy **RotoDynamic Technology (RDR™ and RDH™)** across its manufacturing units. - The **RotoDynamic Heater™** delivers **carbon-free process heating** at temperatures up to **1,700°C**, enabling **full CO₂-free cement production**. - This technology aims to reduce heavy industry emissions by **2.4 billion tonnes annually** at scale, with **five additional deployments planned** within two years. - OCL is leveraging this innovation to become a **model for scalable, low-carbon cement manufacturing** in India. ##### **3. Logistics & Infrastructure Synergy** - Strategic partnership with **CONCOR (Container Corporation of India)** to support **net-zero logistics** and explore development of **bulk cement terminals**. - Integration with Adani’s **logistics, energy, mining, and digital platforms** is enhancing operational efficiency, reducing freight costs, and enabling unified cash management. --- #### **Capacity Expansion & Growth Roadmap** - **Short-term (FY26):** Increase capacity from **107 MTPA to 118 MTPA** group-wide; OCL is a core contributor. - **Mid-term (FY27):** **130–135 MTPA** targeted. - **Long-term (FY28):** **155 MTPA cement and 96 MTPA clinker**, driven by: - **15 MTPA incremental capacity** via debottlenecking at integrated plants (low capital intensity). - Greenfield and brownfield projects at **Salai Banwa, Penna Marwar, Dahej, Kalamboli, Bathinda, Jodhpur, and Warisaliganj**. - Three projects (Salai Banwa, BCCI, Dahej) to begin operations in **Q3 FY26**, others by FY26-end. ##### **OCL-Specific Projects** - **Chittapur (Karnataka):** - Planned **2 MTPA kiln + 3 MTPA grinding capacity** expansion; awaiting environmental clearance. - Capital outlay: ₹1,550–1,600 crore; construction to begin in Q3 FY25. - Already operates **WHR system generating >10 MW**, saving ₹50–55 crores annually. - **Devapur (Telangana):** - New **split clinker grinding unit** planned; site secured in **Sarni village, MP**, to support Devapur expansion. - Forest clearance applications submitted for mining in forested areas; compensatory afforestation cost: ₹130–150 crores. - **Rajasthan (Greenfield):** - Reactivated limestone lease provides **6 MTPA raw material base**. - Evaluating greenfield plant development; strategic for **North India market diversification**. --- #### **Product Portfolio & Premiumization Strategy** OCL has aggressively pursued **brand premiumization**, shifting focus from volume to **value-driven profitability**. ##### **Tiered Brand Architecture (Birla.A1 Portfolio):** | Brand | Positioning | Price Premium | Key Features | |------|-------------|----------------|------------| | **Birla.A1 Dolphin** | Super-premium, all-weather water-repellent cement | ₹45 over standard | Low permeability, rust protection, durability in wet conditions | | **Birla.A1 StrongCrete** | Premium, high-strength cement for load-bearing structures | ₹45 above PPC | OptiMix18™ tech, early de-shuttering, high resilience | | **Birla.A1 OrientGreen** | Mid-premium, eco-friendly "Responsible Cement" | ₹23–25 above PPC | 15% lower carbon footprint, rust-resistant, reduced water usage | - **Premium product sales** reached **25% of trade volumes** (FY25), up from 15.4% in FY23; target: **>30% in B2C by 2026**. - Strong growth: **31% YoY increase in premium volumes** (May 2024). - **Engineering support services** and **on-site technical consultancy** differentiate offerings. --- #### **Operational Excellence & Sustainability** - **Energy Efficiency:** - Achieved **under 690 kcal/kg clinker** heat consumption (industry-leading). - **WHR systems** at Chittapur save ₹11 crores/quarter. - **Open access renewable power** used in Jalgaon & Chittapur, saving ₹10 crores annually. - **Alternative Fuels (AFR):** - **23% thermal substitution** using RDF, MSW, plastic, cloth waste. - Leader in **reverse logistics and circular economy practices**. - **Digital Transformation:** - First Indian cement company to migrate to **SAP S/4HANA on Google Cloud** (completed Nov 2022 in 3.5 months). - Digital tools: **Sales Force Automation (BizSmart), EPOD, Salesforce CRM, Qlik Sense**, enhancing supply chain and distribution efficiency. - **Product Approvals:** - **Approved for use in the Ahmedabad-Mumbai Bullet Train Project**, underscoring technical reliability. - **Birla.A1 StrongCrete** validated for high performance in strength and setting time. --- #### **Market & Sales Strategy** - **Key Markets:** - **Maharashtra** (largest market: 32% sequential growth in Q4 FY24), Mumbai (84 projects served). - **Telangana** (home market), Karnataka, Andhra Pradesh, Madhya Pradesh. - **Sales Channels:** - **55% B2B, 45% B2C** (Q4 FY24); B2B driven by infrastructure and OPC demand. - **B2B growth fueled by premium blended cement (e.g., StrongCrete)** and large EPC contracts. - **Pricing Philosophy:** - **Defends price realization** even at cost of volume loss. - Achieved **₹5,400/ton realization** in Telangana (Feb 2024) despite competitor discounts. - Revenue grew **3% YoY (Feb 2024)** despite volume decline. --- #### **Challenges & Mitigation** - **Jalgaon Grinding Unit:** - Faces **intense competition and high logistics costs** (₹800/ton); avoids OPC due to low margins. - Focused on **PPC and higher-margin products**. - **Devapur (Telangana):** - **Underperformance** due to weak demand in North Telangana and new entrants with subsidized pricing. - **Rajasthan Monetization:** - Exploring monetization of non-core mining lease to **fund priority capex** in Chittapur/Devapur.