"UltraTech Cement has earmarked ₹2,000 crore in capital expenditure to drive a strategic turnaround for India Cements."

UltraTech Cement said it will invest about ₹2,000 crore over the next two years in its subsidiary India Cements to support growth, improve operational efficiency and reduce costs.

The capital expenditure will be directed towards upgrading manufacturing infrastructure and enhancing energy efficiency. Key initiatives include converting four- and five-stage preheaters to six-stage systems, upgrading coolers, optimising processes to lower heat consumption, and installing 21.8 MW of waste heat recovery systems (WHRS). The company will also invest in digitisation and productivity-led initiatives aimed at improving reliability and reducing power consumption.

As part of its sustainability strategy, UltraTech said green power consumption at India Cements—including renewable energy and WHRS—will be ramped up from about 5 per cent in FY25 to nearly 80 per cent by FY29.

India Cements’ total cement capacity is expected to rise to 17.55 million tonnes by March 2027 from 14.75 million tonnes in December 2025.

Alongside the capex programme, UltraTech plans to raise funds through the monetisation of India Cements’ non-core assets to manage debt levels. During the company’s Q3 FY26 earnings call, management said it has already completed the sale of its coal mining subsidiary in Indonesia, with proceeds fully realised. Discussions are also underway for the sale of large land parcels, which could fetch at least ₹500 crore. “There are a couple of big land parcels under discussion with potential buyers,” said Atul Daga, business head and chief financial officer of UltraTech Cement, adding that the company is also evaluating legal options related to certain attached assets.

The company has already realised more than ₹200 crore from earlier asset sales.

For the December 2025 quarter, India Cements reported standalone total income of ₹1,140 crore, compared with ₹913 crore a year earlier. EBITDA turned positive at ₹105 crore against a loss of ₹178 crore in the year-ago period, while loss after tax narrowed sharply to ₹6 crore from ₹409 crore.