UltraTech Cement said on Thursday that its board had approved a 12,886 crore ($1.66 billion) investment to boost the cement maker’s annual capacity by 22.6 mtpy with a mix of brownfield expansion. and virgin wastelands. This would be achieved by setting up integrated and crushing units as well as bulk terminals. The additional capacity will be created across the country.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, “This ambitious capacity expansion plan is an important milestone in UltraTech’s ongoing transformational growth journey. The company has more than doubled its capacity over the past five years and is committed to meeting India’s needs. future housing, road and other infrastructure needs.
“This investment is backed by a strong belief in India’s growth potential as well as a deep and nuanced understanding of the market dynamics of the cement industry. Given the scale of the capital expenditure, I am convinced that this new capacity creation will have a multiplier effect. effect leading to jobs and growth in several parts of India. »
Commercial production from these new capabilities is expected to ramp up by FY25. UltraTech’s current expansion program is on track and expected to be completed by the end of FY23 , did he declare.
Upon completion of the latest phase of expansion, the company’s capacity will reach 159.25 mtpy, cementing its position as the world’s third-largest cement company outside of China, he said in a statement. a stock market record.
The investment comes at a time when last month the Swiss parent company of Holcim India signed a binding agreement with the Adani Group to sell its India business in a deal believed to be worth around $10.5 billion. .
The Adani Group, owned by billionaire Gautam Adani, currently has no cement manufacturing business, but said the businesses were well suited given its port and logistics, energy and property businesses.
As part of the deal, Adani Group will pay $6.4 billion in cash to acquire Swiss company Holcim’s 63.1% stake in Ambuja Cements Ltd and 54.5% stake in ACC Ltd, it said. said Holcim. The rest of the companies’ shares will be purchased through an open offering, Adani said in a separate statement.
UltraTech has 22 integrated manufacturing units, 27 grinding units, one clinkering unit and 8 bulk packaging terminals. It has a network of over 100,000 distribution partners across the country and has a market reach of over 80%.
Its closest rival was Holcim India, which had a combined installed production capacity of 70 mtpy.