UltraTech to raise Indian cement capacity to 182Mta

UltraTech's Board of Directors at its meeting held today, approved the third phase of growth with an investment of INR130,000m (US$1561m) towards increasing the capacity by another 21.9Mta with a mix of brownfield and greenfield projects. 

Kumar Mangalam Birla, chairman of the Aditya Birla Group, said, “Over the past seven years, UltraTech has strategically invested over INR50,000 crores [INR500,000m] to support India's rapidly changing infrastructure landscape. Our fresh commitment of INR13,000 crores [NR130,000m] underscores our deep-rooted belief in India's economic potential. With each investment, we have not only expanded our footprint but also powered India’s needs for housing, roads, and other vital infrastructure.” 

He added, “Earlier this year, I had articulated our ambition to reach a capacity of 200Mta, and this expansion marks a pivotal step in that direction. With this round of capex UltraTech reinforces its position as one of the largest cement companies in the world and a national champion”. 

An important point to note is that there will be no investment in thermal power capacity, keeping in line with the company’s mission to reduce carbon emissions. The expansion also includes investments in setting up additional 39MW WHRS capacity at a cost of INR4530m and INR1800m towards alternative fuel feeding and handling equipment contributing towards the company’s commitment to reduce carbon emissions. The company will use green energy in excess of 60 per cent by the end of 2027. This will be supported by a total WHRS capacity of over 400MW and renewable energy of approximately 1.5GW.

Post-commissioning of the third phase of expansion, approved by the Board today, UltraTech will be strongly placed across the country with 35.5Mta in the south, 40.4Mta in the east, 36.2Mta in the north, 35.7Mta in the central region and 33.8Mta in the west. This will be achieved by setting up  four greenfield and four brownfield plants along with four greenfield bulk terminals.

Commercial production from these new capacities is expected to go on-stream in a phased manner from FY25-26 onwards and will catapult the company’s cement capacity to 187Mta globally.