Companies making substantial capital expenditure commitments signal confidence in future growth trajectories and market leadership. These strategic investments in infrastructure, technology, and capacity expansion often translate to competitive advantages and barriers to entry.
For investors, such bold capex plans can indicate potential market dominance and sustainable returns over the long term.
1. Ambuja Cements Limited
Established in 1983, Ambuja Cements Limited, a subsidiary of the Adani Group, is one of India’s leading cement manufacturers. Initially known as Gujarat Ambuja Cement, it has expanded significantly, focusing on sustainable building solutions. With a target to reach 140 MTPA by 2028, Ambuja operates integrated plants and has a strong distribution network.
The company is committed to achieving Net Zero by 2050, with investments in renewable energy and eco-friendly manufacturing processes. Additionally, its CSR initiatives support water resource development, education, healthcare, and rural infrastructure. Ambuja’s focus on sustainable development and innovative cement products positions it as a key player in the construction sector, serving both domestic and international markets.
Capex Plans:
Ambuja Cements Limited is expanding its cement capacity to 140 MTPA by 2028, with ongoing projects totalling 51 MTPA. The growth will be funded via internal accruals and operating cash flows. Notably, it is investing Rs. 1,600 crore in a 6 MTPA facility in Bihar.
Ambuja Cements Limited’s revenue from operations has decreased by 14.8 percent from Rs. 38,937 crore in FY23 to Rs. 33,160 crore in FY24. The company’s net profit has increased from Rs. 3,024 crore in FY23 to Rs. 4,738 crore in FY24, which has grown by 56.6 percent.
With a market capitalisation of Rs. 1,23,431 crores, Ambuja Cements Limited’s share price closed at Rs. 501 per equity share.
2. Kaynes Technology India
Kaynes Technology India Limited, headquartered in Mysuru, Karnataka, is a leading player in the Electronics Manufacturing Services (EMS) sector. The company provides end-to-end solutions, including the design, development, and manufacturing of electronic systems, such as printed circuit boards (PCBs), and assembly services, catering to industries like automotive, industrial, and consumer electronics. Known for its commitment to innovation and high manufacturing standards, Kaynes operates multiple advanced manufacturing facilities.
The company also focuses on sustainability and operational efficiency. Through various CSR initiatives, Kaynes actively contributes to community welfare, including education and skill development, ensuring a positive social impact as it expands in the growing electronics sector.
Capex Plans:
Kaynes Technology India plans a Rs. 3,307 crore semiconductor facility in Gujarat and a Rs. 2,800 crore new facility in Hyderabad. Backed by government support, the company aims to manufacture six million chips daily and achieve $250 million in revenue.
Kaynes Technology India Limited’s revenue from operations has increased by 17.3 percent from Rs. 1,086 crore in FY23 to Rs. 1,274 crore in FY24. The company’s net profit has increased from Rs. 95 crore in FY23 to Rs. 126 crore in FY24, which has grown by 32.6 percent.
With a market capitalisation of Rs. 37,442 crores, Kaynes Technology India Limited’s share price closed at Rs. 5,836 per equity share.
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3. NTPC Limited
NTPC Limited, India’s largest energy conglomerate, was founded in 1975 and has since become a major player in power generation. With an installed capacity of over 67 GW, NTPC generates electricity through a diverse mix of coal, gas, hydroelectricity, and renewable energy sources. The company is committed to achieving 30% of its capacity from renewable sources by 2032.
NTPC’s involvement spans the entire energy value chain, from coal mining to power generation and distribution. Through its extensive CSR efforts, NTPC focuses on health care, education, skill development, and environmental sustainability, improving the quality of life for communities near its operations while contributing to India’s energy security and sustainability goals.
Capex Plans:
NTPC plans a $50 billion capex over 10 years to diversify into clean fuels, including methanol, ethanol, green hydrogen, and SAF, alongside expanding power generation capacity.
NTPC Limited’s revenue from operations has increased by 1.3 percent from Rs. 1,76,207 crore in FY23 to Rs. 1,78,501 crore in FY24. The company’s net profit has increased from Rs. 17,121 crore in FY23 to Rs. 21,332 crore in FY24, which has grown by 24.6 percent.
With a market capitalisation of Rs. 3,54,657 crores, NTPC Limited’s share price closed at Rs. 366 per equity share.
Written by Fazal Ul Vahab C H
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