"UltraTech Cement to Unveil Second Phase of Expansion Details by December"

UltraTech Cement, part of the Aditya Birla Group, recently shared its intentions with analysts regarding the finalization of its next expansion plan. The company is in the final stages of crafting this comprehensive expansion strategy and plans to present it to the board for approval. The eagerly awaited details are expected to be disclosed by December. With this strategic expansion phase, UltraTech Cement aims to establish a substantial lead of 60 million tonnes (mt) over Adani Cement's projected capacities.

This development follows the announcement made by Kumar Mangalam Birla, Chairman of the Aditya Birla Group, in August, where he outlined the group's aspirations to achieve a total capacity of 200 mt.

Last fiscal year, Adani Cement had disclosed its plans to double its capacity to 140 mt by 2028.

In May 2022, Gautam Adani's business conglomerate revealed its intent to acquire two prominent cement units, Ambuja Cements and ACC, in a $6.6 billion deal. The acquisition was successfully completed in September 2022, positioning Adani Cement as the second-largest cement producer in India and a significant competitor to UltraTech. However, UltraTech maintains a lead of 48.3 mt over its closest rival.

Following the Adani announcement, UltraTech had unveiled two expansion targets: first, to add 22.6 mt by 2024-25, and later, an ambitious goal of 200 million tonnes per annum (mtpa) by 2030. UltraTech has vehemently denied any direct linkage between these plans and the Adani expansion, characterizing them as meticulously planned steps.

In the midst of this industry movement, Adani Cement embarked on its own acquisition journey, beginning with the purchase of Sanghi Cement in August of this year, following the ACC-Ambuja takeover. With this latest acquisition, UltraTech now boasts a cement capacity of 132.45 mt, while Adani Cement is poised to operate at 73.6 mt upon the successful completion of the Sanghi acquisition.

Both companies have laid out extensive expansion milestones for the forthcoming years, with UltraTech maintaining a substantial 60 mtpa lead over its closest competitor. These strategic moves are indicative of the robust competition within the cement industry in India, as leading players aim to fortify their positions and further enhance their production capabilities.

BS