UltraTech Cement has announced a Rs 5,477 crore investment in cement capacity expansion. The board of directors of the Aditya Birla Group company approved raising capacity by 12.8 mtpa with a mix of brown-field and green-field expansion, it said.
The additional capacity will be created in the fast-growing markets of the east, central and north regions of the country. “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 Aatmanirbhar Bharat programme,” said Kumar Mangalam Birla, chairman, Aditya Birla Group
“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,” he added.
This expansion includes the existing approval for the cement plant at Pali in Rajasthan, in addition to the company’s 6.7 mtpa (million tonne per annum) capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has gained pace and is expected to get commissioned by FY22, in a phased manner, the company said.
Given the company’s history of setting up capacities in record time, commercial production from the new capacities is expected to go on stream in a phased manner, by fourth quarter of FY23, UltraTech said.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines