UltraTech announces Rs 12k cr capex for capacity expansion

06 Jun 2022 CW Team

UltraTech Cement announced a capital expenditure (capex) of Rs 12,886 crore for increasing its capacity by 22.6 million tonnes per annum (mtpa) with a mix of brownfield and greenfield expansion.

Chairman of Aditya Birla Group, Kumar Mangalam Birla, said that the target would be achieved by setting up integrated and grinding units and bulk terminals. The capacity expansion plan is a significant milestone in the ongoing transformational growth journey of UltraTech. The company has over doubled its capacity over the last five years and is committed to meeting India’s future needs for housing, roads, and infrastructures.

He said that new capacity addition would create employment, leading to jobs and growth across multiple regions in India.

Commercial production from these new cement capacities is expected to grow in a phased manner by FY25. The company's current expansion programme is on track and estimated to be completed by FY23.

After completing the expansion, its capacity will increase to 159.25 mtpa, strengthening its position as the third-largest cement company in the world, outside of China.

Adani Group acquired Holcim’s cement business in India for $10.5 billion, the largest mergers and acquisitions (M&A) transaction in the infrastructure and materials industry in India.

Holcim holds a 63.19% stake in Ambuja Cements Limited and 54.53% in ACC Limited. The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is $10.5 billion.

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Also read: UltraTech enters race to buy Holcim’s stake in Ambuja Cement, ACC

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