UltraTech To Expand Cement Capacity, Plans 209.3 MTPA Output by FY27

UltraTech Cement, the flagship company of the Aditya Birla Group, expects India’s cement demand to exceed 640 million tonnes per annum (MTPA) by FY30.

According to the company’s latest investor presentation, the demand is projected to grow at a CAGR of 7-8% between FY24 and FY30, based on industry estimates and research reports. In FY24, cement demand stood at 424 MTPA, and with the ongoing infrastructure and real estate development, it is expected to rise significantly in the coming years.

UltraTech’s Capacity Expansion Plans

To cater to this rising demand, UltraTech Cement is aggressively expanding its production capacity. The company aims to increase its grey cement production to 209.3 MTPA by FY27 from its current capacity of 182.8 MTPA in FY25, which includes 5.4 MTPA from overseas operations. This expansion is being achieved through acquisitions as well as brownfield and greenfield projects. By FY26 and FY27, the company plans to add an additional 26.5 MTPA.

UltraTech is also strengthening its nationwide presence, expanding to 82 locations across India. It operates 4,432 UltraTech Building Solutions outlets, which act as a one-stop solution for retail customers, helping to increase the company’s share in customer spending to 60%.

Competition with Adani Group and Market Strategy

UltraTech Cement faces stiff competition from Adani Group’s Ambuja Cement, the second-largest player in India’s cement industry. To maintain its leadership, UltraTech is focusing on capacity expansion and acquisitions. This strategic expansion will allow the company to maintain a stronghold in the cement market while enhancing operational efficiency.

Foray into Wires and Cables Segment

In a major diversification move, UltraTech Cement recently announced its entry into the wires and cables business. The company will invest ₹1,800 crore over the next two years to set up a manufacturing facility in Jhagadia, Gujarat, which is expected to be operational by December 2026. The plant will have a production capacity of 35-40 lakh km and manufacture various types of wires and cables, including low-tension, control, instrumentation, flexible, and rubber cables.

The Indian cables and wires segment is expected to grow at a CAGR of 13% over the next five years. UltraTech is targeting an internal rate of return (IRR) of 25% and a Return on Capital Employed (RoCE) of over 20% from this new venture.

Conclusion

With its expansion in cement production and diversification into new sectors, UltraTech Cement continues to solidify its leadership position in the Indian market while strategically broadening its business portfolio.

On March 4, 2025, UltraTech Cement share price opened at ₹10,250.00, up from its previous close of ₹10,340.80. At 9:45 AM, the share price of UltraTech Cement was trading at ₹10,356.50, up by 0.15% on the NSE.

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