"UltraTech Cement Aims for 200 MTPA Capacity by FY27, Says Kumar Mangalam Birla"

UltraTech Cement, a key entity of the Aditya Birla Group, is on track to exceed a production capacity of 200 million tonnes per annum (MTPA) by FY27, following the approval of recent acquisitions and the completion of ongoing projects.

At the company’s annual general meeting on Wednesday, Chairman Kumar Mangalam Birla announced that the completion of current expansion initiatives and the statutory approvals for the recently announced acquisitions of Kesoram Cement (10.75 MTPA) and The India Cements (14.45 MTPA) will push UltraTech’s total cement capacity beyond the 200 MTPA target set during last year’s AGM. This aligns with the Group’s vision of becoming a leading global player in the cement sector.

In FY24 alone, UltraTech increased its cement production capacity by 13.3 MTPA through expansion projects, surpassing the 150 MTPA mark in April.

Birla emphasized that the company’s capacity expansion is not merely a numbers game. The expanded manufacturing footprint will enable UltraTech to reduce operational costs, particularly in logistics, and improve customer service by minimizing lead times through its robust nationwide distribution network. The increased scale will also position UltraTech to meet India’s growing cement demand more effectively.

UltraTech's presence spans 60 locations across India, with a mix of integrated cement plants, grinding units, bulk terminals, and over 300 ready-mix concrete plants.

Birla highlighted India's economic resilience amid global uncertainties, noting that the country achieved a real GDP growth of 8.2% in FY24, making it the fastest-growing major economy and the fifth-largest globally. He attributed this growth to structural reforms and strong domestic demand, with expectations for India to grow at 7.2% in FY25, driven by increased capital expenditures, digital infrastructure development, and policy reforms.

In FY24, UltraTech significantly boosted its renewable energy capacity by 77% and its Waste Heat Recovery System (WHRS) capacity by 32% compared to the previous year. The company now has 890 MW of green energy capacity, meeting 22% of its total power needs in FY24. With further planned increases in renewable energy and WHRS capacity, UltraTech is set to reach 1,000 MW of green power and aims to increase the share of green energy in its total energy mix to 85% by 2030.

HBL