India's largest cement producer UltraTech Cement Limited has announced that it will invest Rs 102.55 crore to expand its annual cement production capacity by 22.8 million tonnes, including the capacity of its subsidiary Cement of India Ltd. (India Cements Limited). The capacity expansion plan, which has been approved by the company's board of directors, will be implemented through the integrated implementation of brownfield and greenfield projects, further demonstrating UltraTech's commitment to sustained growth and its strategic role in meeting the changing needs of India's booming infrastructure industry.
The massive capital expenditure underscores UltraTech's confidence in India's long-term economic prospects. Over the past decade, UltraTech has demonstrated operational excellence and strategic vision, adding more than 65 million tons of capacity, primarily through non-organic growth. Reflecting its dominant position in the global cement industry, the company is the world's second-largest cement producer by capacity and the largest outside China by sales volume.
In response, Mr. Kumar Mangaram Birla (Kumar Mangalam Birla), Chairman of Aditya Birla Group (Aditya Birla Group), said, India is now a powerful force in the global cement landscape. UltraTech is the leader. This latest capacity expansion comes on the heels of an investment of more than Rs50 billion over the past five years, which further underscores our deep and continued confidence in the Indian economy and the scale of its infrastructure ambitions. When capital is strategically deployed, it has a catalytic effect. It can energize ecosystems, deepen industrial linkages, and create lasting jobs. With this investment, we are strengthening the momentum in core areas and meaningfully contributing to the flywheel of accelerating the Indian economy. As India enters a transformational period of infrastructure and economic development, UltraTech is well positioned to meet the growing demand for cement and meaningfully contribute to the country's journey towards a developed India (Viksit Bharat 2047) in 2047.
The capacity expansion is designed to meet India's sharp growth in demand for cement, which has been driven by increased infrastructure activity, urbanization and government initiatives to boost housing and industrial development. By implementing brownfield expansion projects, which will upgrade the efficiency of existing plants, and greenfield projects, which will establish new production units, UltraTech aims to optimize its operational layout and improve its production flexibility in strategic markets.
It is expected that these new capacities will be put into commercial production in phases starting from fiscal year 2028, when the company's total cement production capacity will reach 240.76 million tons. This initiative will consolidate UltraTech's position as a market leader and enable it to effectively meet domestic and international needs.
In the past five years, UltraTech has invested more than Rs50 billion to drive growth, demonstrating the company's resilience in the face of economic volatility and maintaining strong operational discipline. These investments have enabled the company to build a robust production portfolio and enhance its ability to meet growing demand in urban and semi-urban areas.
The strategic expansion also underscores UltraTech's broader vision for infrastructure growth in India. By strengthening its production capacity, the company not only ensures the stability of supply, but also further solidifies its role as a key contributor to industrial linkages, job creation and ecosystem development in the cement and construction sectors.
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