"UltraTech Cement to Reach 200 MTPA Capacity by FY27, Announces Kumar Mangalam Birla"

UltraTech Cement, part of the Aditya Birla Group, is set to surpass 200 million tonnes per annum (MTPA) capacity by FY27, following approvals for recent acquisitions and the completion of ongoing expansion projects.

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

In FY24 alone, UltraTech increased its cement production capacity by 13.3 MTPA through various expansion initiatives. The company surpassed a 150 MTPA production capacity milestone in April.

Birla emphasized that capacity expansion is not merely about increasing numbers but about leveraging a broader manufacturing footprint to reduce operational and logistics costs while enhancing customer service by decreasing lead times through a robust nationwide distribution network. This scale will better position UltraTech to meet India’s growing cement demand.

UltraTech operates across 60 locations in India with a mix of integrated cement plants, grinding units, and bulk terminals, and has over 300 ready-mix concrete plants.

Despite global economic uncertainties, Birla highlighted India’s economic resilience, noting a real GDP growth of 8.2 percent in FY24, making it the fastest-growing major economy and the fifth-largest globally. He attributed this growth to structural reforms and strong domestic household demand, with inflation easing due to monetary policy actions and supply-side interventions. India is projected to grow at 7.2 percent in FY25, driven by capital expenditures, digital infrastructure improvements, and policy reforms.

UltraTech has also significantly boosted its renewable energy capacity by 77 percent and Waste Heat Recovery System (WHRS) capacity by 32 percent in FY24 compared to FY23. The company now has 890 MW of green energy capacity, accounting for 22 percent of its total power requirements in FY24. With further planned increases, UltraTech aims to reach 1,000 MW of green power and achieve an 85 percent share of green energy in its total energy mix by 2030, Birla added.

HBL