Upon completion of the latest round of expansion, company's capacity will grow to 136.25 mtpa
The commercial production from new capacities will go on stream by Q4FY23 in a phased manner
Aditya Birla Group firm UltraTech Cement Ltd on Thursday announced ₹5,477 crore investment towards 12.8 mtpa capacity expansion with a mix of brown field and green field expansion. Upon completion of the latest round of expansion, company's capacity will grow to 136.25 mtpa.
"The Board of Directors at its meeting held today, approved increasing capacity by 12.8 mtpa with a mix of brown field and green field expansion. The additional capacity will be created in the fast-growing markets of the east, central and north regions of the country," the company stated in a regulatory filing.
The commercial production from new capacities will go on stream by Q4FY23 in a phased manner. "This capacity addition will not impact the ongoing deleveraging program which is on track to make UltraTech debt free by the time the expansion program is completed," the company added.
Commenting on the investment, Kumar Mangalam Birla, Chairman, Aditya Birla Group said, "This significant investment in a core infrastructure sector will accelerate the wheels of economic activity and aid the kickstart of the private investment cycle. The capital outlay, given the current economic backdrop, is aligned with the Government's Atmanirbhar Bharat program."
He added that "The cement industry has been witnessing healthy volumes post relaxation of lockdown, on the back of the Government's thrust on infrastructure, underlying demand from the rural economy and individual home builders. Given its pan-India presence which will be further strengthened by the capacity expansion, UltraTech will be well positioned to support the rising demand for cement in the country."
This expansion includes the existing approval for the cement plant at Pali in Rajasthan, in addition to the company's 8.7 mtpa capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has picked up pace and is expected to get commissioned by FY22, in a phased manner.
On Thursday, the Ultratech Cement stock on BSE was down 0.77% or 38.10 points at ₹4,895 at day's closing.