UltraTech Cement crosses 151.6 mtpa cement capacity, to invest ₹32,400 crore in three years
Upstox
2 min read • Updated: April 3, 2024, 4:04 PM
Summary
UltraTech Cement reached a new milestone of crossing 150 million tonnes per annum of cement production capacity in the country. This capacity is 150% more than in the US and 80% more than in Europe, the company said.
Aditya Birla Group flagship company, UltraTech Cement, announced the commissioning of two new greenfield units in Chhattisgarh and Tamil Nadu. The new units have a combined capacity of 5.4 million tonnes per annum (mtpa). In addition, the company has announced fresh investment plans for the next three years.
With these two units, the total capacity of the company stands at 151.6 mtpa. This capacity is 150% more than that in the US and 80% more than that in Europe, the company said.
New milestone achieved
The company achieved the first milestone of 100 mtpa capacity after 36 years of inception in 2019 and added the next 50 mtpa capacity in just five years with an investment of around ₹32,000 crore. This makes UltraTech Cement one of the fastest growing cement companies in the industry.
Management optimistic on growth
Speaking on this milestone, Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, “Reaching this milestone is symbolic of India’s ascent on the global stage and demonstrates the dynamism and scale of Indian corporations. UltraTech, as a national champion, is an enabler of India’s development.”
Robust Capex plans
In addition to the recent capacity addition, the company has 35.5 mtpa of capacity in the pipeline for expansion across 16 locations. Further, the acquisition of Kesoram Cement will augment the company’s total grey cement capacity to 198.2 mtpa. The company also plans to invest ₹32,400 crore in the next three years for capacity building in the country.
UltraTech Cement, in its latest quarterly results for Q3FY24, reported a 7.8% year-on-year (YoY) rise in total revenue at ₹16,740 crore. Meanwhile, the net profit for the quarter also increased by 66.9% YoY to ₹1,775 crore.
Following the announcement, shares of UltraTech cement jumped 2.3% higher at ₹10,277 levels but later gave up gains to trade 0.3% lower at ₹10,006 apiece at 2:40 pm on the NSE.