Even as the government is set to step up capital expenditure in the coming years, there are strong signals of a pick-up in the private sector capital expenditure cycle also, according to Kumar Mangalam Birla, Chairman of Aditya Birla Group.

“The three factors of cyclical upswing, conducive policy impulses and an improving global backdrop are likely to align themselves to position India for a virtuous cycle of growth and investments in the medium-term,” Birla said, speaking at the annual general meeting of UltraTech on Wednesday.

“Last year when I addressed you for the very first time virtually, it felt like a momentous point of departure. Today, it feels like business as usual. This is emblematic of how rapidly, creatively, and effectively we have all adapted. As people. And, as corporations,” he said.

More silver linings

Birla said though the uncertainty about virus mutations and infection waves has not gone away, there are more silver linings to the economic scenario today than at any point earlier during the pandemic. “Economic indicators show that the Indian economy is also rapidly normalising towards pre-pandemic activity levels. In FY22, the Indian economy is projected to grow at a little below 10 per cent. Vaccination is picking up pace, which would improve India’s resilience against a potential third wave. Various steps taken by the RBI and the government have helped in containing the economic disruptions of the pandemic,” Birla said.

To leverage emerging opportunities, UltraTech itself has announced growth plans of 19.8 million tonnes with an investment of over ₹6,500 crore. These capacities are expected to go on stream in a phased manner till FY23. Upon completion of the latest round of expansion, its capacity will grow to 136.25 mtpa, reinforcing its position as the third-largest cement company in the world, outside of China.

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