UltraTech Cement's capacity to grow to 159 mtpa post latest round of expansion: Kumar Mangalam Birla

File image of Kumar Mangalam Birla

UltraTech Cement's capacity will grow to 159 million tonnes per annum (mtpa), post the completion of the latest round of expansion, Kumar Mangalam Birla said on August 17.

UltraTech's fresh capital expenditure plan is backed by a strong conviction on India’s growth potential as well as a deep and nuanced understanding of the market dynamics of the cement industry, Birla said, in his keynote address at the company's annual general meeting.

Notably, the company has grown significantly increased capacity over the last five years from 69.6 mtpa to 119.9 mtpa and is the one cement company to mark Rs 50, 000 crore revenue milestone.

"Upon completion of the latest round of expansion, the company’s capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China", he said.

View on Economic Recovery In India:

Birla also noted that the economic recovery cycle in India "remains firmly in place", due to the significant progress in vaccination and the upswing in public capital expenditure.

Pointing towards the surge in inflation globally, the veteran industrialist said that the situation is not as adverse in India as in some of the other leading economies.

While India’s inflation rate has been above the RBI’s tolerance range for the past seven months, "the overshoot has not been as severe as in many other countries", the Aditya Birla Group chairperson said.

Dynamism in India’s digital ecosystem, diversification of global supply chains away from China and greater emphasis of investors on sustainable finance offer new opportunities for India, Birla added.

Addresses Concerns Around Cost Inflation:
Mangalam Birla highlighted that businesses will need to remain on guard regarding financial market volatility and cost pressures this year. Acknowledging the macro situation, he said, “There have been two major fallouts of the current global crisis. One is the tightness in energy markets and concerns around the energy security of some regions which has had indirect implications for many economies. Secondly, elevated energy prices have spurred a chain reaction, fuelling the existing inflationary impulses. This has triggered central banks to normalise monetary policy faster than anticipated, denting consumer confidence and dampening risk sentiment in the financial markets”, he added.