UltraTech Cement Allocates INR 9,500 Cr for Expansion in FY24

UltraTech Cement said on April 29 that it has earmarked Rs 9,500 crore worth capex for the current financial year as the cement maker is going ahead with capacity expansion plans to protect market share and cater to robust domestic demand.
The company plans to spend 70 percent of the earmarked capex as growth capex while 13 percent will be spent on ESG-related activities, according to an investor presentation filed by the company on BSE.
Earlier this month, the Aditya Birla group-owned said that it will invest Rs 32,400 crore towards its capital expenditure over the next three years.
“It took 36 years for the cement business of the Aditya Birla Group, to get to a capacity of 100 mtpa. And UltraTech has subsequently added the next 50 mtpa in less than 5 years with an investment of around Rs 32,000 crore,” the company said on April 2.
Apart from the two plants that have added 5.4 mtpa capacity, the cement firm, in the past 12 months, has expanded its volume by 18.7 mtpa. Moreover, the ongoing expansion of 35.5 mtpa is actively being implemented across 16 locations, the firm noted. It is also in the process of closing the proposed acquisition of Kesoram Cement.
As of March 31 2024, grey cement capacity of the company amounted to 140.8 millions of tonnes per annum (MTPA) in India. The company expects the capacity to be 157.0 MTPA by FY25.

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