UltraTech confident of increasing market share with large scale capacity expansion plan

UltraTech Cement's management dismissed concerns of any overcapacity in the target markets of its ambitious expansion plans, particularly in the northern and western regions, despite major cement makers, such as JSW Cement, Dalmia Bharat, and JK Cement, among others, also making a play for those regions on the back of growth in infrastructure, real estate, and rural housing.

"We have always grown better than the rest of the industry at a pace higher than the industry. We
are confident that our capacity share, which today stands at 28 percent, will go up to 32-33 percent and there's no stopping us there. So UltraTech will continue to gain market share. UltraTech does not see any risk in being able to sell more volumes of cement charges," Atul Daga, UltraTech's chief financial officer, told investors in a post-earnings call.

The Aditya Birla Group company's managing director, KC Jhanwar, said that the location of the company's facilities will help them stand out among the rest and help gain more market share. The management cited large-scale infrastructure projects in these markets, as well as sturdy growth in rural

The country's largest cement manufacturer announced fresh capital expenditure commitments of Rs 10,255 crore, which will expand its capacity by 22.8 million tonne per annum (MTPA) to around 240.8 MTPA, expected to be onstreamed from FY28. Atul Daga added that the company will provide more details on the commissioning timeline of the new capacities in the next quarter.