The Board of Directors at Ultratech, a flagship company of the Aditya Birla Group, approved a substantial ₹13,000 crore investment on Saturday, October 28. This investment is aimed at increasing their cement production capacity by 21.9 million metric tonnes per annum (MTPA) through a combination of greenfield and brownfield projects.

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With this investment, Ultratech is boosting its total capacity to 182 MTPA in India.

The commitment to India's growth story was emphasised by Kumar Mangalam Birla, the Chairman of the Aditya Birla Group, who stated, "This investment is yet another marker of UltraTech’s commitment to India’s growth story." He went on to highlight the company's previous investments, which have exceeded ₹50,000 crore over the past seven years.

Birla expressed the significance of this fresh commitment by stating, "With each investment, we have not only expanded our footprint but also powered India’s needs for housing, roads, and other vital infrastructure."

He reiterated the company's target to reach a capacity of 200 MTPA and described this expansion as a pivotal step in that direction.

Ultratech's continuous growth reinforces its position as one of the largest cement companies globally and a national champion, he added.

An essential aspect of this investment is Ultratech's commitment to sustainability. The company has decided not to invest in thermal power capacity as part of its mission to reduce carbon emissions.

Instead, they plan to set up an additional 39 MW Waste Heat Recovery System (WHRS) capacity, costing ₹453 crore, and invest ₹180 crore in alternative fuel feeding and handling equipment to contribute to reducing carbon emissions.

Ultratech aims to use green energy in excess of 60% by the end of 2027, supported by a total WHRS capacity of over 400 MW and approximately 1.5 GW of renewable energy.

Once the third phase of expansion, as approved by the Board today, is commissioned, Ultratech will have a robust presence across India with 35.5 MTPA in the South, 40.4 MTPA in the East, 36.2 MTPA in the North, 35.7 MTPA in the Central region, and 33.8 MTPA in the West.

"This will be achieved by setting up 4 greenfield and 4 brownfield plants alongwith 4 greenfield bulk terminals," it said in a statement.

The new capacities are expected to commence commercial production in a phased manner starting from the fiscal year 2026.

The stock has gained close to 17% in 2023 so far.

First Published:Oct 28, 2023 5:04 PM IST