India's largest cement producer UltraTech Cement on Thursday said it will invest Rs 12,886 crore to increase its production capacity by 22.6 million tonnes per annum (MTPA).
The company's Board of Directors at its meeting held on Thursday approved the capital expenditure required to increase expansion capacity.
The new capacity will be 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, UltraTech Cement said in a statement.
"This ambitious capacity expansion plan is a significant milestone in the ongoing transformational growth journey of UltraTech. 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," said Kumar Mangalam Birla, Chairman, Aditya Birla Group.
UltraTech Cement is a flagship company of Kumar Mangalam Birla-led Aditya Birla Group.
"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," Birla said in the statement.
UltraTech Cement is the third-largest cement producer in the world, outside of China, with a consolidated grey cement capacity of 119.95 MTPA.
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.
On expansion timeframe, the statement said, "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."
( With inputs from ANI )
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