The Aditya Birla Group flagship UltraTech Cement plans to invest ₹13,000 crore in the third phase of capacity expansion of 21.9 million.

The Board of Directors, in a meeting held on Saturday, approved the capacity expansion, which will be through a mix of new projects and brownfield expansion.

In line with the company’s mission to reduce carbon emissions, it will not invest in thermal power capacity.

The expansion also includes investments in setting up an additional 39 MW Waste Heat Recovery System for ₹453 crore and ₹180 crore towards alternative fuel feeding and handling equipment.

Green energy initiatives

The company will use green energy in excess of 60 per cent by 2027-end. This will be supported by a total WHRS capacity of over 400MW and renewable energy of about 1.5 GW.

Post commissioning of the third phase of expansion, UltraTech will be strongly placed across the country with 35.5 mtpa in the South, 40.4 mtpa in the East, 36.2 mtpa in North, 35.7 mtpa in Central and 33.8 mtpa in the West.

This will be achieved by setting up four greenfield and four brownfield plants along with four greenfield bulk terminals.

Commercial production from these new capacities is expected to go on stream in a phased manner from FY26 and will catapult the company’s cement capacity to 187 mtpa globally.

Commitment to infrastructure

Kumar Mangalam Birla, Chairman of Aditya Birla Group, said over the past seven years, UltraTech has strategically invested over ₹50,000 crore to support India’s rapidly changing infrastructure landscape.

The fresh commitment of ₹13,000 crore underscores the deep-rooted belief of the company in India’s economic potential, he said.

With each investment, the company has not only expanded its footprint but also powered the country’s need for housing, roads, and other vital infrastructure, he added.

Earlier this year, Birla had articulated his ambitious  plan to reach a capacity of 200 mtpa, and this expansion marks a pivotal step in that direction.

With this round of capex, UltraTech reinforces its position as one of the largest cement companies in the world.

UltraTech is the third largest cement producer in the world, outside of China, with a consolidated grey cement capacity of 137.85 MTPA.