UltraTech Cement to invest Rs 32,400 cr towards capex in next 3 years; commissions 2 new plants

With the addition of the two new plants, the total capacity of UltraTech Cement surpassed 150 mtpa

Aditya Birla group-owned UltraTech Cement on April 2 announced the commissioning of two new greenfield projects in Chhattisgarh and Tamil Nadu, with its total capacity reaching 151.6 million tonnes per annum (mtpa), the company stated in an exchange filing.

The company also said that it will invest Rs 32,400 crore towards its capital expenditure over the next three years.

“It took 36 years for the cement business of the Aditya Birla Group, to get to a capacity of 100 mtpa. And UltraTech has subsequently added the next 50 mtpa in less than 5 years with an investment of around Rs 32,000 crore,” the company said.

Over the past two decades, UltraTech has grown 11 times, far outpacing the industry growth of four times, it further added.

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, "Reaching this milestone is symbolic of India’s ascent on the global stage and demonstrates the dynamism and scale of Indian corporations. UltraTech, as a national champion, is an enabler of India’s development".

Apart from the two plants that have added 5.4 mtpa capacity, the cement firm, in the past 12 months, has expanded its volume by 18.7 mtpa. Moreover, the ongoing expansion of 35.5 mtpa is actively being implemented across 16 locations, the firm noted. It is also in the process of closing the proposed acquisition of Kesoram Cement.

KC Jhanwar, managing director of UltraTech Cement, said, "This achievement is a significant milestone in UltraTech’s transformative growth journey. India’s strong growth trajectory provides the cement sector significant headroom for long term growth. As India’s leading cement and ready-mix-concrete company, UltraTech is well placed to support the country in its exciting growth journey ahead".