UltraTech Cement has unveiled an investment plan of Rs 13,000 crore to boost its production capacity by 21.9 million tonnes per annum (tpa). The decision was greenlit by the AV Birla group firm’s board on 28 October 2023, marking the third phase of their growth strategy involving this supplementary capital injection.
Post-expansion, UltraTech will significantly enhance its production capacity across various regions in India: 35.5 million tpa in South India, 40.4 million tpa in the East, 36.2 million tpa in the North, 35.7 million tpa in Central India, and 33.8 million tpa in the West. To achieve the targets, the company will establish four greenfield, four brownfield plants, and four greenfield bulk terminals.
The commercial production from these new capacities is anticipated to commence gradually from 2025-26 onwards, ultimately elevating the company’s global cement capacity to an impressive 187 million tpa.
Kumar Mangalam Birla, Chairman of the Aditya Birla group, emphasised UltraTech’s commitment to supporting India’s infrastructure development over the past seven years with strategic investments exceeding Rs 50,000 crore. This fresh commitment of Rs 13,000 crore underscores their unwavering belief in India’s economic potential and their dedication to meeting the nation’s needs for housing, roads, and critical infrastructure.
Mr. Birla also revealed the group’s ambition to reach a capacity of 200 million tpa earlier this year, making this round of capital expenditure a significant milestone in UltraTech’s journey. It solidifies its position as one of the world’s largest cement companies and a national champion.
Notably, this investment will not include any allocation to thermal power capacity, aligning with UltraTech’s mission to reduce carbon emissions. The expansion plans also encompass investments in setting up an additional 39 MW of Waste Heat Recovery Systems (WHRS) capacity.
