UltraTech Cement to Reach 200 MTPA Capacity by FY27

Kumar-Mangalam-Birla
Image Courtesy: Aditya Birla Group

UltraTech Cement, a company under the Aditya Birla Group, anticipates its production capacity to exceed 200 million tonnes per annum (mtpa) by FY27, following the approval of its recent acquisitions and the completion of ongoing projects. Kumar Mangalam Birla, Chairman of UltraTech Cement, stated that with the completion of current expansion initiatives by FY27 and the necessary regulatory approvals for the newly announced acquisitions of Kesoram Cement (10.75 mtpa) and India Cements (14.45 mtpa), the company’s total cement capacity will surpass the 200 mtpa target set during last year’s AGM.

This milestone aligns with the Group’s long-term vision of becoming the leading global player in the cement industry, Birla highlighted at the company’s annual general meeting held on Wednesday. In FY24 alone, UltraTech boosted its cement production capacity by 13.3 mtpa through various expansion projects. The company achieved a production capacity milestone of 150 mtpa in April.

Emphasizing that capacity expansion is more than just a numbers game, Birla noted that UltraTech intends to use its expanded manufacturing footprint to reduce operational expenses, particularly logistics costs, and enhance customer service by shortening lead times through its extensive nationwide distribution network. More importantly, this scale will further equip UltraTech to meet India’s growing demand for cement across the country.

UltraTech’s presence spans 60 locations in India, featuring a combination of integrated cement plants, grinding units, and bulk terminals, along with over 300 ready-mix concrete plants. Despite a globally uncertain macroeconomic landscape, India’s economy has demonstrated resilience, with a real GDP growth of 8.2 percent in FY24, making it the fastest-growing major economy and the fifth-largest globally.

Structural reforms and domestic household demand have been key drivers of this growth. Inflation has eased, supported by monetary policy actions and supply-side interventions. India is projected to grow at a rate of 7.2 percent in FY25, driven by ongoing efforts to bolster the domestic economy through increased capital expenditure, the creation of world-class digital infrastructure and payment platforms, and policy reforms aimed at improving the ease of doing business, Birla explained.

In FY24, UltraTech significantly expanded its renewable energy capacity by 77 percent and its Waste Heat Recovery System (WHRS) capacity by 32 percent compared to FY23. The company now has 890 MW of green energy capacity, which accounted for 22 percent of its total power requirements in FY24. With planned increases in renewable energy and WHRS capacity, UltraTech is expected to soon reach a major milestone of 1,000 MW of green power, aiming to increase the overall share of green energy in its total energy mix to 85 percent by 2030, according to Birla.

UltraTech Cement, a flagship company of the Aditya Birla Group, is the largest manufacturer of grey cement, ready mix concrete (RMC), and white cement in India. With a presence across 60 locations in India and over 300 RMC plants, UltraTech’s extensive portfolio and innovative practices position it as a leader in the global cement industry.