Leading cement manufacturer UltraTech Cement Ltd on Thursday announced to invest Rs 12,886 crore (around USD 1.65 billion) to add 22.6 MTPA capacity in its total production, with a mix of brownfield and greenfield expansion.
The board of the Aditya Birla Group firm in a meeting held on Thursday approved the expansion plans, said an UltraTech Cement in a regulatory filing.”The Board of Directors at its meeting held today approved capex of Rs 12,886 crores towards increasing capacity by 22.6 MTPA with a mix of brownfield and greenfield expansion,” it added.
The investment, which will cater to the”future growth” of the company, will be funded through a mix of debt and internal accruals, UltraTech said.”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,” it noted.
Commercial production from these new capacities is expected to go on stream in a phased manner by FY25, according to UltraTech.
At present, UltraTech’s production capacity is 119.95 Metric Tonnes Per Annum (MTPA) and after the completion of the sanctioned expansion along with the current expansion programmes, which are estimated to be completed by FY23, it would go up to 159.25 MTPA.