UltraTech plans Rs 16K cr capex to hit 240 mtpa

UltraTech Cement, an Aditya Birla Group company, has cemented its position as the world’s largest cement producer outside China by surpassing 200 million tonnes per annum (mtpa) capacity in India, with ambitious plans to invest Rs 16,000 crore for further expansion to 240 mtpa by FY28.

Photograph: Amit Dave/Reuters

UltraTech has become the world’s largest cement company outside China, as it has surpassed 200 million tonnes per annum (mtpa) of installed cement manufacturing capacity in India, the company said.

The cement business of the Aditya Birla group will now spend Rs 16,000 crore to achieve its target capacity of 240 mtpa by 2027-28 (FY28).

Strategic Expansion and Future Goals

“I see the 200-million-tonne milestone only as a marker, not a destination. With a target of 240 million tonnes by FY28 at an investment of Rs 16,000 crore already in motion, the path ahead is firmly underway,” said Kumar Mangalam Birla, chairman, Aditya Birla group.

India’s largest cement producer commissioned three new cement grinding units on Friday, with a cumulative capacity of 8.7 mtpa.

The facilities, located in Shahjahanpur (Uttar Pradesh), Patratu (Jharkhand), and Vizag (Andhra Pradesh), have been strategically positioned to strengthen regional supply.

These would be serving North India’s booming construction corridor, the industrial heartland of Jharkhand, and the rapidly urbanising coastal belt of Andhra Pradesh, the company noted.

UltraTech’s consolidated global capacity stands at 205.5 mtpa, which includes 5.4 mtpa from its operations in the UAE, Bahrain, and Sri Lanka.

India’s Infrastructure Growth and UltraTech’s Role

Further, Birla said the 200 mtpa milestone also describes India’s place in the world, an India that has grown comfortable with scale, in its ambitions, its execution, and its sense of self.

“India stands at a defining juncture, where choices made over the next decade, will shape infrastructure for generations.

“That calls for continuity of purpose and clarity of execution.

“And, UltraTech is well positioned to translate this moment into enduring value for all stakeholders,” Birla added.

UltraTech took 36 years to reach the capacity of over 100 mtpa, which it achieved in 2019.

The next 100 mtpa has taken less than seven years.

Of its 200 mtpa capacity, about 110 million tonnes has been built through greenfield and brownfield expansions.

The remaining 90 million tonnes is through a series of acquisitions over the years.

Ambuja Cements is UltraTech’s nearest competitor in terms of capacity with a consolidated capacity of 109 mtpa, as of FY26.

Scale and Market Penetration

Birla went on to say that scale is not everything, but the only thing.

UltraTech’s contribution to India must be understood not only through tonnage, but through where those tonnes finally go.

One in every three homes built in India is built with UltraTech.

Also, two of every five km of National Highways Authority of India’s (NHAI’s) concrete roads and four of every five km of metro rail use UltraTech Cement.

Two of every five bags of cement that go into India’s airports are also UltraTech, Birla said.

UltraTech’s network spans 150,000 channel partners, with a presence across more than 90 per cent of India’s talukas.

Around 65 per cent of UltraTech’s trade sales come from rural India.

The company spends over Rs 16,000 crore every year for logistics. Its procurement basket exceeds Rs 27,000 crore annually.