ACC , a subsidiary of the diversified Adani Group, has taken a significant step towards decarbonizing the cement industry. The company has announced a groundbreaking partnership with Coolbrook to deploy the world's first commercial RotoDynamic Heater™ (RDH™) at its Boyareddypalli Integrated Cement Plant in Andhra Pradesh, India.

Revolutionary Technology for Cement Production

The RDH™ technology aims to decarbonize the calcination phase, which is the most fossil fuel-intensive stage of cement production. This innovative system will provide clean heat to dry and enhance alternative fuels, enabling a higher substitution of fossil fuels with sustainable alternatives.

Key Features of the RDH™ Deployment

Advancing Sustainability Goals

This deployment aligns with ACC's ambitious sustainability targets:

• Increase Alternative Fuel and Raw Materials (AFR) usage to 30% by FY28
• Achieve 60% green power share by FY28
• Advance towards net-zero goals by 2050 (validated by the Science Based Targets initiative)

Industry Impact and Future Outlook

Vinod Bahety, CEO of Adani Group's Cement Business, emphasized the significance of this deployment: "This is a major leap towards achieving our net-zero goals. By integrating such cutting-edge electrification solutions into our cement production, we are accelerating the shift away from fossil fuels, reducing emissions at scale, enhancing the utilization of clean energy sources, and setting a new standard for low-carbon cement manufacturing."

The partnership between ACC and Coolbrook demonstrates the real-world feasibility of clean, electrified industrial heat powered entirely by renewables. This positions ACC to spearhead India's emergence as the world's clean manufacturing cement hub.

As the world's 9th largest cement producer, with a capacity of ~107 MTPA, ACC's adoption of this technology could have far-reaching implications for the global cement industry and its efforts to reduce carbon emissions.

Conclusion

The deployment of the RotoDynamic Heater™ at ACC's Boyareddypalli plant marks a pivotal moment in the cement industry's journey towards sustainability. As the first commercial application of this technology, it sets a precedent for other cement manufacturers worldwide and reinforces ACC's position as a leader in sustainable cement production.

ACC Limited , one of India's leading cement manufacturers, has reported a strong financial performance for the quarter ended September 30. The company's results showcase significant growth in revenue, EBITDA, and volume, along with strategic capacity expansion plans.

Key Financial Highlights

• Revenue: ACC reported a 28% year-over-year increase in revenue.
• EBITDA: Q2 EBITDA reached ₹849.00 per metric ton, representing a 67% year-over-year increase.
• Volume Growth: The company achieved a 16% year-over-year growth in volume.
• Power Costs: Decreased by 9% from ₹6.54 to ₹5.95 per kwh, attributed to renewable energy supplies from parent company Ambuja's 1000 MW RE power project.
• Treasury Funds: Healthy treasury funds of ₹787.00 crores, increasing to ₹1500.00 crores after receiving ₹750.00 crores in tax refunds.

Strategic Developments and Capacity Expansion

• Current Capacity: ACC operates with a current capacity of 40.4 MTPA.
• Upcoming Capacity Increase: Expected to reach 43.7 MTPA with the commissioning of Salai Banwa and Kalambol plant expansion in Q3.
• Additional Capacity: Plans to unlock 5.6 MTPA through plant debottlenecking over 24 months.
• RMX Operations Expansion: Plans to expand from 116 plants across 45 cities to 365 plants by 2030, with a target capacity of 35 million cubic meters.

Financial Position

• Trade Receivables: Increased by ₹2,515.00 crores, primarily due to ₹2,000.00 crores in running bills for cement supplies to parent company Ambuja under MSA guidelines.

Market Outlook

ACC's strong Q2 performance, marked by significant revenue and EBITDA growth, along with ambitious capacity expansion plans, indicates a positive outlook for the company in the cement industry. The reduction in power costs through renewable energy adoption showcases the company's commitment to operational efficiency and sustainability.

Investor Considerations

• The substantial improvement in revenue and EBITDA reflects strong operational performance and market demand.
• Capacity expansion plans suggest potential for future growth and market share increase.
• The healthy treasury position and tax refunds strengthen the company's financial stability.
• The expansion of RMX operations indicates diversification and growth in value-added products.

Investors should note that while these developments are significant, it's important to consider broader market conditions and long-term trends in the cement industry when making investment decisions.

ACC continues to demonstrate its strategic financial management and expansion efforts in the Indian cement market. The company's Q2 results reflect both revenue growth and impressive EBITDA improvement, underscoring its ability to capitalize on market opportunities and drive operational efficiencies.