UltraTech Cement announces Rs. 12,886 crores investment towards 22.6 MTPA capacity expansion

The Board of Directors at its meeting held today, approved capex of Rs. 12,886 crores towards increasing capacity by 22.6 mtpa with a mix of brown field and green field expansion. This would be achieved by setting-up integrated and grinding units as well as bulk terminals. The additional capacity will be created across the country.

Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group said, "This ambitious capacity expansion plan is a significant milestone in the ongoing transformational growth journey of Ultra Tech. The company has more than doubled its capacity over the last five years and is committed to meeting India's future needs for housing, roads, and other infrastructure. This investment is backed by a strong conviction on India's growth potential as well as a deep and nuanced understanding of the market dynamics of the cement industry. Given the size of the investment outlay, I am confident that this new capacity creation will have a multiplier effect leading to jobs and growth across multiple regions in India."

Commercial production from these new capacities is expected to go on stream in a phased manner, by FY25. UltraTech's current expansion program is on track and estimated to be completed by the end of FY23.

Upon completion of the latest round of expansion, the Company's capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China.

Shares of UltraTech Cement Limited was last trading in BSE at Rs. 5977.65 as compared to the previous close of Rs. 6083.10. The total number of shares traded during the day was 8407 in over 2398 trades.

The stock hit an intraday high of Rs. 6108.00 and intraday low of 5950.00. The net turnover during the day was Rs. 50526786.00.

Source : Equity Bulls

Keywords

UltraTechCement INE481G01011 Capex CapacityExpansion Brownfield Greenfield