UltraTech Cement, an Aditya Birla Group company, plans to invest ₹12,886 crore to add capacity of 22.6 million tonnes per year with a mix of brown-field and green-field expansion across the country. The fresh capacity addition comes at a most competitive cost of $76 per tonne.
Over completion of the latest round of expansion, the company’s capacity will increase to 159.25 mtpa, reinforcing its position as the third largest cement company in worldwide, outside of China. The new investment was approved by the board of directors at its meeting held here on Thursday.
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. Given the size of the investment expenditure, the new capacity creation will have a multiplier effect leading to jobs and growth across multiple regions in India, said, Kumar Mangalam Birla, Chairman, Aditya Birla Group.
UltraTech Cement has consolidated grey cement production of 119.95 mtpa. The fresh capacity expansion comes as the Adani Group plans to make its entry in cement business with the addition of Ambuja Cement and ACC with a combined capacity of 65.9 mtpa which will go up to 80 mtpa by 2023.
As per the open offer made by the Adani Group, Ambuja Cement capacity addition is valued at $299 per tonne and that of ACC at $131 a tonne. The current 120 mtpa capacity of UltraTech is valued at $199 a tonne while the 47.4 mtpa capacity of Shree Cement is at $223 a tonne.