Ultratech Cement Ltd plans to invest INR110bn (US$2.2bn) over the next three years to expand its production capacity, the company told its shareholders in a letter late Wednesday.
The unit of the diversified Aditya Birla group said the expansion would be completed by March 31, 2014, and that it would add 10Mt to its cement production capacity.
The company currently produces 52Mta of cement.
Ultratech said it would fund its capital expenditure through a "judicious mix of internal accruals and borrowings."
In the first six months of this fiscal year which began April 1, the company spent INR11bn on its expansion projects.
Ultratech said India’s cement demand is expected to grow by eight per cent a year over the next several years.