The Board of Directors at UltraTech Cement (Aditya Birla group) has approved capex of INR128,860m (US$1659m) to raise cement capacity by 22.6Mta with a mix of brownfield and greenfield projects. This will be achieved by setting-up integrated and grinding units as well as bulk terminals. The additional capacity will be created across the country.
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.”
Commercial production from these new capacities is expected to go on-stream in a phased manner by FY25. UltraTech’s 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 will grow to 159.25Mta, reinforcing its position as the third largest cement company in the world, outside of China.
