UltraTech to incur 129-bln-rupee capex to raise capacity by 23 mln tn

2 Jun 2022

UltraTech Cement Ltd has decided to incur capital expenditure of up to 128.9 bln rupees towards increasing capacity by 22.6 mln tonne per year by way of integrated units, grinding units and bulk terminals, in a phased manner by 2024-25 (Apr-Mar).

The capacity expansion will be done through the brown field and green field routes, the company said in a stock exchange filing today.

The Aditya Birla Group company will fund the capex through a mix of borrowings and internal accruals.

UltraTech’s existing grey cement capacity is nearly 120 mln tonne per annum with a current capacity utilisation of 77%.

Kumar Mangalam Birla, Chairman, Aditya Birla Group said that the “ambitious capacity expansion plan is a significant milestone in the ongoing transformational growth journey of UltraTech.”

The company said the commercial production from the new capacities is expected to go on stream in a phased manner by 2024-25.

It said that the current expansion program was on track and estimated to be completed by the end of 2022-23 (Apr-Mar).