UltraTech Cement announces Rs 5,477 crore investment to expand capacity

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December 4, 2020 1:45 AM

The capital outlay, given the current economic backdrop, is aligned with the government’s Atmanirbhar Bharat program. It is also a marker of UltraTech’s ascent from being India’s No.1 cement player to a national champion.”

Upon completion of the latest round of expansion, UltraTech’s capacity will grow to 136.25 MTPA, reinforcing its position as the third-largest cement company in the world, outside of China.Upon completion of the latest round of expansion, UltraTech’s capacity will grow to 136.25 MTPA, reinforcing its position as the third-largest cement company in the world, outside of China.

UltraTech Cement on Thursday announced an investment of Rs 5,477 crore towards increasing its capacity by 12.8 million tonne per annum with a mix of brownfield and greenfield expansion. The additional capacity will be created in the east, central and north regions markets of the country.

Commenting on the development, Kumar Mangalam Birla, chairman, Aditya Birla Group said: “This significant investment in a core infrastructure sector will accelerate the wheels of economic activity and aid the kickstart of the private investment cycle. The capital outlay, given the current economic backdrop, is aligned with the government’s Atmanirbhar Bharat program. It is also a marker of UltraTech’s ascent from being India’s No.1 cement player to a national champion.”

He added, “The cement industry has been witnessing healthy volumes post relaxation of lockdown, on the back of the Government’s thrust on infrastructure, underlying demand from the rural economy and individual home builders. Given its pan-India presence which will be further strengthened by the capacity expansion, UltraTech will be well-positioned to support the rising demand for cement in the country.”

This expansion includes the existing approval for the cement plant at Pali in Rajasthan, in addition to the company’s 6.7 MTPA capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has picked up the pace and is expected to get commissioned by FY22 in a phased manner.

Commercial production from the new capacities is expected to go on stream in a phased manner, by the fourth quarter of the financial year 2022-2023. This capacity addition will not impact the ongoing deleveraging program which is on track to make UltraTech debt-free by the time the expansion program is completed, the company said in a statement.

Upon completion of the latest round of expansion, UltraTech’s capacity will grow to 136.25 MTPA, reinforcing its position as the third-largest cement company in the world, outside of China.

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