UltraTech Cement Ltd. said it will invest ₹12,886 crore in expanding capacity by 22.6 million tonnes per annum (MTPA).
Board of directors of the Aditya Birla Group company, approved the plan which would be a combination of brownfield and greenfield expansion.
“This would be achieved by setting up integrated and grinding units as well as bulk terminals,” the company said in a statement.
“The additional capacity will be created across the country. Commercial production from these new capacities is expected to go on stream in a phased manner, by FY25.”
UltraTech said its current expansion programme is on track and estimated to be completed by the end of FY23.
Upon completion of the latest round of expansion, the company’s capacity would grow to 159.25 MTPA. At present, UltraTech’s production capacity stands at 119.95 MTPA.
The planned capacity expansion at UltraTech, the largest cement manufacturer, is estimated to cost $76 per tonne of cement, which is significantly lower than recent the acquisition cost of Holcim’s India cement assets by the Adani Group, analysts said. The Adani Group had said it would acquire the combined capacity of about 70 MTPA of Ambuja Cement and ACC for $10.5 billion [more than ₹81,000 crore.]
Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “This ambitious capacity expansion plan is a significant milestone in the ongoing transformational growth journey of UltraTech. The company has more than doubled its capacity over the last five years and is committed to meeting India’s future needs for housing, roads, and other infrastructure.”
“This investment is backed by a strong conviction on India’s growth potential as well as a deep and nuanced understanding of the market dynamics of the cement industry. Given the size of the investment outlay, I am confident that this new capacity creation will have a multiplier effect leading to jobs and growth across multiple regions in India,” he added.
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