UltraTech Cement's capacity to increase by 159 mtpa

18 Aug 2022 CW Team

After the most recent round of expansion is completed, UltraTech Cement's capacity will increase to 159 million tonnes per annum (mtpa), Kumar Mangalam Birla stated on August 17.

In his keynote address at the company's annual general meeting, Birla stated that UltraTech's new capital expenditure plan is supported by a strong belief in India's growth potential as well as a comprehensive understanding of the market dynamics of the cement industry.

Notably, the company's capacity has increased significantly over the last five years, from 69.6 mtpa to 119.9 mtpa, and it is the only cement company to reach the Rs500 billion revenue milestone.

"Upon completion of the latest round of expansion, the company’s capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China", he said.

Birla also stated that the Indian economic recovery cycle "remains firmly in place" as a result of significant progress in vaccination and an increase in public capital expenditure.

In response to the global rise in inflation, the veteran industrialist stated that the situation in India is not as bad as in some of the world's leading economies.

While India's inflation rate has been above the RBI's tolerance range for the past seven months, the Aditya Birla Group chairperson claims that "the overshoot has not been as severe as in many other countries."

According to Birla, India's digital ecosystem is becoming more dynamic, global supply chains are becoming less dependent on China, and investors are placing more of an emphasis on sustainable finance.

Addresses Concerns About Cost Inflation: Mangalam Birla emphasized that this year, businesses will need to be on guard against cost pressures and financial market volatility. Acknowledging the overall situation, he said, “There have been two major fallouts of the current global crisis. One is the tightness in energy markets and concerns around the energy security of some regions which has had indirect implications for many economies. Secondly, elevated energy prices have spurred a chain reaction, fuelling the existing inflationary impulses. This has triggered central banks to normalise monetary policy faster than anticipated, denting consumer confidence and dampening risk sentiment in the financial markets”, he added.

After the most recent round of expansion is completed, UltraTech Cement's capacity will increase to 159 million tonnes per annum (mtpa), Kumar Mangalam Birla stated on August 17. In his keynote address at the company's annual general meeting, Birla stated that UltraTech's new capital expenditure plan is supported by a strong belief in India's growth potential as well as a comprehensive understanding of the market dynamics of the cement industry. Notably, the company's capacity has increased significantly over the last five years, from 69.6 mtpa to 119.9 mtpa, and it is the only cement company to reach the Rs500 billion revenue milestone. Upon completion of the latest round of expansion, the company’s capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China, he said. Birla also stated that the Indian economic recovery cycle remains firmly in place as a result of significant progress in vaccination and an increase in public capital expenditure. In response to the global rise in inflation, the veteran industrialist stated that the situation in India is not as bad as in some of the world's leading economies. While India's inflation rate has been above the RBI's tolerance range for the past seven months, the Aditya Birla Group chairperson claims that the overshoot has not been as severe as in many other countries. According to Birla, India's digital ecosystem is becoming more dynamic, global supply chains are becoming less dependent on China, and investors are placing more of an emphasis on sustainable finance. Addresses Concerns About Cost Inflation: Mangalam Birla emphasized that this year, businesses will need to be on guard against cost pressures and financial market volatility. Acknowledging the overall situation, he said, “There have been two major fallouts of the current global crisis. One is the tightness in energy markets and concerns around the energy security of some regions which has had indirect implications for many economies. Secondly, elevated energy prices have spurred a chain reaction, fuelling the existing inflationary impulses. This has triggered central banks to normalise monetary policy faster than anticipated, denting consumer confidence and dampening risk sentiment in the financial markets”, he added. See also: UltraTech announces capex for capacity expansion UltraTech plans $875 mn investment as a part of growth plan

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