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UltraTech Cement Gears Up for Massive Expansion, Aims to Be a Global Leader

UltraTech Cement announces a ₹32,400 crore investment for a massive expansion plan, aiming to reach a capacity of 200 MTPA and become a global leader in the cement industry.

UltraTech Cement Gears Up for Massive Expansion, Aims to Be a Global Leader

UltraTech Cement, the Aditya Birla Group's crown jewel in the cement industry, has announced a significant expansion plan that will solidify its position as a leader in India and propel it towards the top of the global rankings. The company plans to invest a staggering ₹32,400 crore over the next three years to achieve a cement manufacturing capacity close to 200 million tonnes per annum (MTPA).

 

This ambitious plan comes on the heels of two newly commissioned greenfield projects in Chhattisgarh and Tamil Nadu, bringing UltraTech's total capacity to an impressive 151.6 MTPA. This growth trajectory is remarkable – it took 36 years for the Aditya Birla Group's cement business to reach 100 MTPA, while UltraTech itself added the next 50 MTPA in just five years, showcasing its aggressive expansion strategy.

 

Building a National Champion: A Cause for Celebration

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed his pride in UltraTech's achievements. He views this milestone as a testament to India's economic rise on the global stage and a symbol of the dynamism of Indian corporations. Birla highlights UltraTech's role as a "national champion," actively contributing to India's development through its infrastructure-enabling products.

 

Expansion Beyond the Headlines: A Multi-Pronged Approach

The two newly commissioned plants contribute 5.4 MTPA to UltraTech's capacity. However, the company's growth story goes beyond this immediate addition. In the past year alone, UltraTech has expanded its volume by a substantial 18.7 MTPA. Furthermore, ongoing expansion projects at 16 locations are set to add another 35.5 MTPA. UltraTech is also finalizing the acquisition of Kesoram Cement, which will further bolster its reach and capacity.

 

Leadership Through Innovation and Strategic Planning

K C Jhanwar, Managing Director of UltraTech Cement, acknowledges the significance of this achievement. He views it as a major milestone in the company's transformative journey. Jhanwar emphasizes India's strong economic growth trajectory, which creates a favorable environment for the cement sector in the long run. He positions UltraTech, as India's leading cement and ready-mix concrete company, to play a pivotal role in supporting the country's future development.

 

Market Leader with Global Ambitions

This substantial investment by the Aditya Birla Group is expected to solidify UltraTech's position as the undisputed market leader in the Indian cement sector. With a revenue of $7.9 billion, UltraTech is already the third-largest cement producer globally outside of China, boasting a total grey cement capacity of 146.2 MTPA.

 

The Competitive Landscape: Keeping an Eye on the Future

While UltraTech enjoys a dominant position in India, competition is heating up. Ambuja Cement, along with ACC's combined capacity, stands as the second-largest player in India with a current capacity of 77.4 MTPA. However, Adani Group, which recently acquired Ambuja Cement, has set ambitious goals to double its capacity to 140 MTPA by 2028. This aggressive expansion by a new player necessitates strategic planning by UltraTech to maintain its market leadership.

 

Building on a Strong Foundation: A Track Record of Success

UltraTech's commitment to expansion is backed by a strong financial performance. Earlier this year, the company reported its highest-ever quarterly profit after tax of ₹1,777 crore, reflecting a significant 68% increase year-on-year. Overall net sales also rose by 7.8%, reaching ₹16,487 crore in the last quarter. These positive financial indicators demonstrate the company's operational efficiency and its ability to translate strong cement demand into profitability.

 

UltraTech Cement's ambitious expansion plans position it for continued growth and solidify its role as a key player in India's development. With a keen eye on the evolving competitive landscape and a commitment to innovation, UltraTech is well on its way to becoming a global leader in the cement industry.

 


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