UltraTech Cement is set to expand its production capacity by 22.8 mtpa with a fresh investment of ₹10,255 crores. This expansion, including that of its subsidiary India Cements Limited, will be a mix of brownfield and greenfield projects, starting from FY28. The move aims to meet the rising demand and reflects confidence in India’s economic growth.
Capacity Expansion Details
UltraTech Cement has committed to a significant capacity expansion with an investment of ₹10,255 crores. The expansion will increase cement production capacity by 22.8 mtpa, including the capacity of its subsidiary, India Cements Limited. The funding will be through internal accruals.
Production Capacity
The company’s existing capacity is 192.26 mtpa, with 71% utilization in H1FY26. With the expansion, UltraTech’s cement capacity will reach 240.76 mtpa. The additional capacity will be added through integrated units and grinding units across the country.
Projected Timeline
Commercial production from the new capacities is expected to commence in a phased manner, starting from FY28.
Market Position
UltraTech Cement ranks as the second largest cement company globally by capacity, excluding China, and the largest by sales volume. The company has added over 65 mtpa capacity through inorganic growth over the past decade.
Strategic Rationale
The investment rationale is to cater to future growth, reinforcing momentum across core sectors and contributing to the acceleration of India’s economic growth.
UltraTech’s Market Performance
UltraTech is consistently outpacing the industry in India. The 10-year CAGR for UltraTech is approximately 12%, compared to approximately 5% for the industry.
Capacity Utilization & Volume Growth
UltraTech is operating with high efficiency. The company has a capacity utilization of approximately 78%.
Financial Performance
UltraTech has demonstrated strong financial performance. Normalised PAT has grown significantly, reaching ~11% CAGR over the past 5 years.
Source: BSE
