UltraTech to invest Rs 13,000 cr to add production capacity by 21.9 MTPA; to cater future growth

Adani Cement has recently acquired a majority stake in Sanghi Industries.UltraTech said Commercial production from these new capacities is expected to go on stream in a phased manner from FY26 onwards and will catapult the companys cement capacity to 187 MTPA globally. Besides India, UltraTech has facilities at UAE, Bahrain and Sri Lanka.Earlier this year, I had articulated our ambition to reach a capacity of 200 MTPA, and this expansion marks a pivotal step in that direction.

Cement maker UltraTech on Saturday announced a fresh investment of Rs 13,000 crore to add production capacity by 21.9 million tonnes per annum as part of the third phase of growth, taking its total capacity to 182 MTPA after completion.

This investment would be financed through ''internal accruals'' and will cater to future growth of the company, said UltraTech Cement.

The board of the Aditya Birla Group flagship firm on Saturday ''approved the 3rd phase of growth with an investment of Rs 13,000 crore towards increasing the capacity by another 21.9 MTPA with a mix of brownfield and greenfield projects,'' said a statement from the company.

The company has an existing capacity of 132.45 MTPA of domestic grey cement and had a capacity utilisation of 75 per cent during the September quarter of FY24.

According to UltraTech: ''Post commissioning of the 3rd phase of expansion, approved by the board today, UltraTech will be strongly placed across the country with 35.5 MTPA in south; 40.4 MTPA in east; 36.2 MTPA in north; 35.7 MTPA in central and 33.8 MTPA in the west.'' This will be achieved by setting up 4 greenfield and 4 brownfield plants along with 4 greenfield bulk terminals.

''Commercial production from these new capacities is expected to go on stream in a phased manner from FY26 onwards and will catapult the company's cement capacity to 187 MTPA globally,'' it said.

Commenting over the development, Aditya Birla Group Chairman Kumar Mangalam Birla said this investment is yet another marker of UltraTech's commitment to India's growth story.

Over the past seven years, UltraTech has strategically invested over Rs 50,000 crore to support India's rapidly changing infrastructure landscape, he said.

''Our fresh commitment of Rs 13,000 crore 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,'' Birla added.

Keeping its commitments towards green energy, UltraTech said, ''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 39 MW WHRS (Waste Heat Recovery Systems) capacity at a cost of Rs 453 crore and Rs 180 crore towards alternative fuel feeding and handling equipment, contributing towards the company's commitment to reduce carbon emissions.

UltraTech is the leading cement producer in India, followed by Adani Cement Ltd, which owns Ambuja Cements and ACC having a combined capacity of 73.6 MTPA. Adani Cement has recently acquired a majority stake in Sanghi Industries.

UltraTech said: ''Commercial production from these new capacities is expected to go on stream in a phased manner from FY26 onwards and will catapult the company's cement capacity to 187 MTPA globally.'' Besides India, UltraTech has facilities at UAE, Bahrain and Sri Lanka.

''Earlier this year, I had articulated our ambition to reach a capacity of 200 MTPA, 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,'' said Birla.

UltraTech Cement is the third largest Cement producer in the world, outside of China, with a consolidated grey cement capacity of 137.85 MTPA.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)