UltraTech Cement Ltd., part of the Aditya Birla Group, will be investing Rs. 13,000 crore as CapEx to increase the company’s production capacity by 21.9 Million Metric Tonne Per Annum (MMTPA). UltraTech shared this information via its stock filing dated 28th October 2023.
UltraTech to Achieve 182 MMTPA Production Capacity, CapEx to be Greenfield & Brownfield
With UltraTech’s announced investment, the company is set to achieve a total production capacity of 181.6 MMTPA in India. The company’s production capacity post this investment will be 36.2 MMTPA in Northern India, 35.5 MMTPA in South India, 35.7 MMTPA in Central India, 40.4 MMTPA in Eastern India, and 33.8 MMTPA in Western India.
UltraTech will make this fresh investment in 4 greenfield plants, 4 brownfield plants, and 4 greenfield bulk terminals. These facilities will be added in a phased manner, starting FY-26.
The company specified that this expansion will be funded completely by the company’s internal accruals.
UltraTech additionally mentioned that including its production capacity in India, this expansion will take its global manufacturing capacity to 187 MMTPA.
Ultratech to Focus on Reducing Carbon Footprint, No Investment in Thermal Power
UltraTech’s release stated that the company will not direct the aforesaid CapEx towards establishing captive thermal power plants.
To further lower its carbon footprint, UltraTech has allotted Rs. 633 crore out of its total CapEx amount for developing Waste Heat Recovery Systems (WHRSs) and alternative fuel feeding and handling systems. Out of this Rs. 453 crore is for WHRSs, while the remaining Rs. 180 crore is for alternative fuel systems.
UltraTech’s release also specified that the company targets to satisfy over 60% of its energy needs from green energy sources by the end of 2027.
UltraTech’s CapEx a Step towards Realising 200 MMTPA Capacity Target
While speaking about the company’s long-term targets, Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “Earlier this year, I had articulated our ambition to reach a capacity of 200 MMTPA, 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”. Mr. Birla mentioned this target at the company’s 23rd Annual General Meeting (AGM) in August 2023.
Mr. Birla added that the company has invested over Rs. 50,000 crore as CapEx over the past 7 years.
About UltraTech Cement Ltd.: UltraTech Cement is a major Indian cement manufacturer, and its product range comprises grey cement, white cement, and Ready Mixed Concrete (RMC). As per UltraTech, it is the third largest cement producer in the world (excluding China). The company has 23 integrated cement manufacturing units, and it reported a consolidated revenue of Rs. 63,239.98 crore for the 2022-23 financial year.