UltraTech Cement Announces Rs 32,400 Crore Investment Plan Over Next Three Years

By siliconindia  |  Wednesday, 03 April 2024, 09:39:52 AM IST

UltraTech Cement Announces Rs 32,400 Crore Investment Plan Over Next Three Years
India's premier cement manufacturer, UltraTech Cement, has unveiled its ambitious investment plan, earmarking a staggering Rs 32,400 crore over the next three years to fortify its expansion endeavors. This move aligns with the company's strategic vision to elevate its cement manufacturing capacity to nearly 200 million tonnes per annum (mtpa), a testament to its unwavering commitment to meeting the nation's burgeoning infrastructure needs.
With the Indian economy witnessing a surge in expenditure on infrastructure projects and a consistent uptick in housing demand, bolstered by government initiatives, the cement sector is experiencing a robust surge in sales. Projections indicate that the demand trajectory is poised to sustain its formidable growth rate of approximately 8 per cent in the current fiscal year. In response to this buoyant demand, cement majors like UltraTech are devising meticulous capacity expansion plans to solidify their market presence.
As part of its ongoing expansion strategy, UltraTech has recently operationalized two new greenfield capacities, adding 5.4 mtpa in the states of Chhattisgarh and Tamil Nadu. This achievement propels UltraTech's total capacity to an impressive 151.6 mtpa. Notably, K M Birla, the Chairman of Aditya Birla Group, emphasized that this milestone mirrors India's ascendancy on the global stage and underscores the dynamism and scale of Indian enterprises. He affirmed that UltraTech's expanded scale will aptly cater to India's surging cement demand landscape.
UltraTech's expansion blueprint encompasses the commissioning of additional capacities across 16 locations, envisaging an augmentation of 35.5 mtpa to its existing 151 mtpa capacity. Moreover, the company is on the verge of sealing the acquisition deal for Kesoram Cement, boasting a capacity of 10.75 mtpa. The amalgamation of expansion initiatives and acquisitions is poised to materialize into a colossal investment of Rs 32,400 crore over the next triennium.
Upon completion, these strategic investments are anticipated to catapult UltraTech's overall capacity to a formidable 198.2 mtpa, further consolidating its position as the market leader. Despite formidable competition and capacity augmentations by rivals, UltraTech's proactive measures underscore its unwavering determination to uphold its preeminent status in the cement industry.

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