UltraTech Cement announces 12.8Mta capacity expansion

UltraTech Cement’s (Aditya Birla Group Cement) Board of Directors have approved an increase of cement capacity by 12.8Mta with a mix of brownfield and greenfield expansions. The additional capacity will be created in the fast-growing markets of the eastern, central and northern regions of India.

Kumar Mangalam Birla, chairman of the Aditya Birla Group, said: "This significant investment in a core infrastructure sector will accelerate the wheels of economic activity and aid the kickstart of the private investment cycle. The capital outlay, given the current economic backdrop, is aligned with the Government’s Atmanirbhar Bharat program. It is also a marker of UltraTech's ascent from being India's No 1 cement player to a national champion."  

The expansion programme includes the existing approval for the cement plant at Pali in Rajasthan in addition to the company’s 6.7Mta capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which is expected to get commissioned in a phased manner by FY22. 

Commercial production from the new capacities is expected to be implemented in stages by the 4QFY23. Upon completion of the latest round of expansions, the company’s capacity will grow to 136.25Mta, reinforcing its position as the third-largest cement company in the world, outside of China.