UltraTech to increase production capacity 10%
WAREHOUSING & LOGISTICS

UltraTech to increase production capacity 10%

UltraTech Cement plans to raise their production capacity by 12.8 million metric tonne (mmt) to 136.25 mmt. The Board has approved an investment of Rs 5,477 crore to enable this expansion, which would be a mix of greenfield and brownfield projects.

The investment amount is far beyond the planned Rs 1,500 crore capex for the FY21. The company justified this by referring to the financial recuperation in the domestic market and the increase in the demand of the cement in general.

The developing markets of the eastern, central and northern regions of the country will be the prime locations for the creation of this additional capacity, the Aditya Birla Group stated in an official release. Amongst all the mentioned regions, the eastern region has generated the highest demand, thanks to increased labour availability as the migrant workers got back from their hometown due to lockdown. A Motilal Oswal report stated that this demand is also upheld by government spending in that region.

Kumar Mangalam Birla, the chairman at the Aditya Birla Group, stated that given the current financial scenery, the capital cost is in line with the government’s Atmanirbhar Bharat scheme, which aims to financially boost the core infrastructure sector and enable the cycle of private investments.

Greenfield projects will make up 28% of the total capacity expansion, while the balance will be made-up of brownfield projects. The new capacities will be phased out, starting from the fourth quarter of FY23.

The plan includes the organisation’s 6.7 mmt capacity expansion that is currently under progress in Odisha, West Bengal, Uttar Pradesh and Bihar. The process has picked up pace since the relaxation of lockdowns. It also includes the approval for the plant at Pali in Rajasthan.

The deleveraging programme that is currently underway to free UltraTech Cement of its long-term liabilities, by the time the expansion is completed, will not be affected by this capacity addition master plan. This plan is set to reinforce their position as the third-largest cement company in the world, outside of China.

Source: Business Standard

UltraTech Cement plans to raise their production capacity by 12.8 million metric tonne (mmt) to 136.25 mmt. The Board has approved an investment of Rs 5,477 crore to enable this expansion, which would be a mix of greenfield and brownfield projects. The investment amount is far beyond the planned Rs 1,500 crore capex for the FY21. The company justified this by referring to the financial recuperation in the domestic market and the increase in the demand of the cement in general. The developing markets of the eastern, central and northern regions of the country will be the prime locations for the creation of this additional capacity, the Aditya Birla Group stated in an official release. Amongst all the mentioned regions, the eastern region has generated the highest demand, thanks to increased labour availability as the migrant workers got back from their hometown due to lockdown. A Motilal Oswal report stated that this demand is also upheld by government spending in that region. Kumar Mangalam Birla, the chairman at the Aditya Birla Group, stated that given the current financial scenery, the capital cost is in line with the government’s Atmanirbhar Bharat scheme, which aims to financially boost the core infrastructure sector and enable the cycle of private investments. Greenfield projects will make up 28% of the total capacity expansion, while the balance will be made-up of brownfield projects. The new capacities will be phased out, starting from the fourth quarter of FY23. The plan includes the organisation’s 6.7 mmt capacity expansion that is currently under progress in Odisha, West Bengal, Uttar Pradesh and Bihar. The process has picked up pace since the relaxation of lockdowns. It also includes the approval for the plant at Pali in Rajasthan. The deleveraging programme that is currently underway to free UltraTech Cement of its long-term liabilities, by the time the expansion is completed, will not be affected by this capacity addition master plan. This plan is set to reinforce their position as the third-largest cement company in the world, outside of China. Source: Business Standard

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?