UltraTech Cement, India’s largest cement producer, has earmarked `32,400 crore as capex for the next three years for expansion of its production capacity, which will include completing its acquisition of Kesoram Cement.
The Aditya Birla Group’s cement flagship firm intends to expand capacity of grey cement to 198.2 million tonne per annum (MTPA). Apart from that, on Tuesday, It has also commissioned two new greenfield capacities totalling 5.4 MTPA in Chhattisgarh and Tamil Nadu as part of its expansion plans. This takes its total cement capacity to 151.6 MTPA, UltraTech Cement said in a statement.
This capacity is more than 150% of the capacity in the United States and 80% of Europe’s capacity.
“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. With a mix of integrated cement plants, grinding units, bulk terminals across 59 locations in India along with 307 ready mix concrete plants, UltraTech’s scale and capacity footprint is unparalleled,” Aditya Birla Group chairman Kumar Mangalam Birla said.
“And this scale will further enable UltraTech to service India’s growing demand for cement across the country. This milestone underscores our pledge to continue laying the foundation for a resilient and prosperous India, ensuring our growth strides in tandem with the nation’s development,” he added.
Aditya Birla Group’s cement business took 36 years to reach 100 MTPA production capacity.
UltraTech, which invested about Rs 32,000 crore, added the next 50 MTPA in less than five years. Over the past two decades, UltraTech has grown 11 times, far outpacing the industry growth of four times, it added.
Over the last 12 months, UltraTech has expanded its capacity by 18.7 MTPA. In addition, another 35.5 MTPA is being added across 16 locations.
“India’s strong growth trajectory provides the cement sector significant headroom for long-term growth,” UltraTech Cement MD KC Jhanwar said.
On November 30, UltraTech Cement entered into an agreement to acquire Kesoram Industries’ cement assets in a share-swap deal for an enterprise valuation of `7,600 crore. The transaction was expected to be completed in nine-12 months.
The transaction will allow UltraTech, an Aditya Birla Group company, to extend its footprint into the western and southern markets. Kesoram Industries, which has a presence in cement, tyres and tubes, heavy chemicals and spun pipes, sells cement under the brand Birla Shakti.