The Capex was approved by UltraTech Cement’s Board of Directors on Thursday. The development comes barely a month after the Adani Group signed an agreement with Holcim India’s Swiss parent company to acquire the Indian assets (Ambuja Cements & ACC) for an estimated US$10. 5 billion, this is the largest M&A of billionaire Gautam Adani.
UltraTech’s existing capacity is around 120 mtpa. The company had announced an investment of Rs 5,700 crore in December 2020 to bring this to around 136 mtpa. With the new announcement of adding 22.6 mtpa, UltraTech Cement’s total capacity will increase to around 159 mtpa by FY25. The addition of Birla will widen the gap between UltraTech Cement and Holcim, whose current combined cement capacity is around 70 tonnes per year.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said: “The company has more than doubled its capacity in the last five years and is committed to meeting India’s future needs for housing, roads and other infrastructure. Given the level of capital spending, I am confident that this new capacity creation will have a multiplier effect that will create jobs and growth in several regions of India. ”
The capacity expansion will be accomplished through a mix of brownfield and greenfield projects, the company said in a statement. This would be achieved through the establishment of integrated and milling units, as well as bulk terminals.
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