UltraTech Cement to invest $750m to expand capacity by 12.8mtpa

UltraTech Cement, a subsidiary of Indian conglomerate Aditya Birla Group, has announced an investment of INR 54.77 billion ($750 million) for expanding its cement production capacity by 12.8 million tons per annum (mtpa).

The increased capacity will come through a combination of brown field and green field expansion.

It includes the existing approval for the UltraTech Cement cement plant in Pali, Rajasthan along with a 6.7mtpa capacity expansion currently being taken up across the states of Uttar Pradesh, Bihar, Odisha, and West Bengal.

According to UltraTech Cement, the expansion of its capacity across the four states has picked up momentum and is anticipated to get commissioned by FY22, in phases.

The Indian cement company expects to achieve commercial production from the new capacities in a phased manner by the fourth quarter of FY23.

UltraTech Cement said that the capacity addition will not affect the ongoing deleveraging program, which is on track to make the company free from debt by the time the expansion project is wrapped up.

Following the completion of the latest round of expansion, the production capacity of UltraTech Cement is estimated to move up to 136.25mtpa.

Aditya Birla Group Chairman Kumar Mangalam Birla. Photo courtesy of UltraTech Cement Ltd.

Kumar Mangalam Birla – Aditya Birla Group Chairman 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 cement industry has been witnessing healthy volumes post relaxation of lockdown, on the back of the Government’s thrust on infrastructure, underlying demand from the rural economy and individual home builders.”