Key Highlights:
- Rs 10,000 crore capex planned for FY26 to expand cement capacity and energy efficiency.
- Total capacity at 192.26 MTPA as of June 2025; goal is to cross 200 MTPA soon.
- Strong competition from Adani Group, which is also expanding fast through acquisitions.
Mumbai: UltraTech Cement, part of the Aditya Birla Group, has announced a major investment of Rs 10,000 crore for the financial year 2025-26. This money will be used to increase cement production capacity, and also improve energy use and efficiency at its plants.
The company expects the cement market to grow by 6-7% in FY26, helped by more spending on infrastructure, housing, and urban development.
Capacity Nearing 200 MTPA
In FY25, UltraTech added 42.6 million tonnes per annum (MTPA) to its capacity. This includes both new plants and acquisitions. As of June 30, 2025, its total cement capacity stands at 192.26 MTPA.
UltraTech is now close to hitting the 200 MTPA milestone, which would further strengthen its position as India’s largest cement maker.
Acquisitions Fuel Growth
The company bought India Cements and the cement division of Kesoram Industries, gaining a strong base in South India. These deals added 26.3 MTPA to UltraTech’s capacity.
Besides that, the company is also expanding organically. In FY25, UltraTech added 16.3 MTPA organically, which was 55% of the entire industry’s organic growth that year.
Focus on Efficiency & Green Energy
UltraTech is also improving operations and adding green energy capacity. At the old Kesoram plants, 107 MW of green energy is being added to reduce costs and improve efficiency.
India Cements, one of its new acquisitions, reached EBITDA break-even in March 2025 after operational improvements. Plans are underway to upgrade it further to UltraTech standards.
Strong Financial Outlook
UltraTech crossed Rs 75,000 crore in revenue in FY25, and though its net debt to EBITDA ratio went up to 1.33x in March 2025, the company expects to bring it down fast with better margins and rising sales.
Rising Competition from Adani
UltraTech faces strong competition from the Adani Group’s Ambuja Cements, which is also growing rapidly.
Adani entered the cement business in 2022 and now owns Ambuja, ACC, Penna, Sanghi, and Orient Cement. It reached 100 MTPA capacity in record time and is aiming for 140 MTPA by 2028.
(With PTI Inputs)
