UltraTech Cement announces fresh capex plans

UltraTech Cement's chairman, Kumar Mangalam Birla, addressed shareholders at the company's 22^nd Annual General Meeting (AGM) stating that the company’s Board of Directors approved fresh capex of INR128,860m (US$1623m) towards increasing capacity by 22.6Mta with a mix of brownfield and greenfield expansions.

The additional capacity would be created across the country by setting up integrated and grinding units as well as bulk terminals. Commercial production from these new capacities is expected to go on-stream in a phased manner by FY24-25. The company has already significantly increased capacity over the last five years from 69.65Mta to 119.95Mta.

UltraTech Cement has recently added 3.2Mta of cement capacity by commissioning capacity at its Patliputra Cement Works, Bihar, and Dankuni Cement Works, West Bengal, and Line II of the Bara grinding unit, Uttar Pradesh. This is the first phase of the 19.9Mta capacity expansion and will help the company service the fast-growing cement demand in the eastern and central regions of India.  

UltraTech Cement also commenced operations from the bulk terminal at Kalamboli, Navi Mumbai. This is the company’s seventh bulk terminal in India. As part of the ongoing expansion plan, the second clinker line of 2.7Mta was commissioned at Hirmi Cement works in the 1QFY22-23. A further cement mill upgrade of 1.3Mta is also on track to be commissioned in the 2QFY22-23. The commissioning of the clinkerisation unit was completed well ahead of schedule, which is a unique achievement considering the slowdown faced in project work earlier in the year due to COVID, added Mr Birla.

Upon completion of the latest round of expansion, UltraTech Cement's capacity will grow to 159.25Mta, reinforcing its position as the third largest cement company in the world, outside of China.