UltraTech Cement, a subsidiary of the Aditya Birla Group, has disclosed plans to invest ₹32,400 crore in capital expenditure (capex) over the next three years to facilitate its expansion endeavors. The company aims to elevate its capacity to approximately 200 million tonnes per annum (MTPA) in the near future.
Furthermore, it has announced the commencement of two new greenfield projects, located in Chhattisgarh and Tamil Nadu, with a combined capacity of 5.4 MTPA. These projects will augment its total capacity to 151.6 MTPA.
Over the last year, UltraTech Cement has expanded its capacity by 18.7 MTPA, with ongoing expansions underway across 16 locations, adding up to 35.5 MTPA. Additionally, the acquisition of Kesoram Cement is on the horizon, further bolstering its grey-cement capacity to 198.2 MTPA.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized their commitment to fortifying India’s resilience and prosperity, aligning growth with the nation’s development.
UltraTech’s comprehensive footprint, encompassing integrated cement plants, grinding units, bulk terminals, and ready mix concrete plants across 59 locations in India, positions it uniquely to cater to the country’s escalating cement demand.
The cement industry is poised to increase its capacity by 150-160 MTPA from FY25 to FY28, as per a Crisil Ratings report. The report anticipates a significant portion of this capacity addition to materialize in the eastern and central regions, primarily led by large players.
Despite the robust capacity expansion, intense competition may restrict price growth to 0-1%, preventing margins from reaching FY21 levels. Nevertheless, UltraTech Cement, which has witnessed remarkable 11-fold growth over the past two decades, remains optimistic about supporting India’s growth trajectory.
KC Jhanwar, Managing Director of UltraTech Cement, affirmed the company’s commitment to sustainable growth and delivering value to stakeholders, citing India’s promising growth prospects and UltraTech’s strategic position in facilitating the nation’s journey ahead.
