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 Cement major Ambuja on Monday said that it plans to expand the production capacity of its plant in Punjab's Ropar with an estimated investment of Rs 310 crore over the next two years.

A part of the global building materials conglomerate Holcim, Ambuja is expanding its cement grinding unit at Ropar by 1.5 MTPA.

"The expansion is expected to be completed by June 2023. Post this expansion, the total capacity of the cement grinding unit at Ropar will increase to 4.5 MTPA from 3 MTPA now."

"This expansion will help the company maintain its share and competitiveness in the northern markets in India. The Ropar brownfield expansion is part of the company's strategy to increase its total cement capacity to 50 MTPA in the mid-term."

The upcoming unit, the company said, will have a vertical roller mill for cement grinding and will produce fly ash-based cement.

The fresh investment is also made in anticipation of a growing demand for cement triggered by the steady growth in India's urbanisation leading to more investment in public infrastructure and housing, the company said.

"We are optimistic about the growth in demand for cement in India. The expansion of our Ropar unit along with more investment in the coming years will help us unlock fresh opportunities by debottlenecking of existing capacities and create new ones across the country," Ambuja Cements MD & CEO Neeraj Akhoury said.

"We expect our expansion plans to add around 15 MTPA capacity in the mid-term taking our total cement ca-pacity to 50 MTPA."

In addition, the company will be commissioning new capacity in Rajasthan's Marwar that will enhance clinker capacity by 3 MTPA and help increase cement sales by 5 MTPA, thereby contributing to long term strategy of capacity expansion.

"This greenfield integrated plant is being set-up with a total investment of Rs 2,350 crore."