India’s largest cement manufacturer Ultratech Cement, part of the Aditya Birla Group, has announced a massive ₹10,255 crore capital expenditure plan aimed at expanding its production capacity by 22.8 million tonnes per annum (mtpa). The investment, approved by the company’s board on October 18, 2025, will be executed through a mix of brownfield and greenfield projects across multiple states. Notably, India Cements Ltd., a subsidiary of Ultratech, will also receive a share of this expansion, reinforcing the group’s commitment to scale and regional diversification.
The fresh capex will take Ultratech’s total cement manufacturing capacity to 240.76 mtpa by FY28, up from 183.4 mtpa as of March 2025. This move comes on the back of sustained infrastructure demand, government-backed housing schemes, and a robust pipeline of commercial real estate projects. Chairman Kumar Mangalam Birla described the investment as a reflection of “deep confidence in India’s economic trajectory and infrastructure ambitions.”
🧠 Key Highlights of Ultratech’s Capex Announcement
| Element | Details |
|---|---|
| Capex Value | ₹10,255 crore |
| Capacity Addition | 22.8 mtpa |
| Target Capacity | 240.76 mtpa by FY28 |
| Execution Model | Brownfield + Greenfield |
| Subsidiary Involved | India Cements Ltd. |
| Strategic Focus | Regional diversification, infra-led demand |
| Announcement Date | October 18, 2025 |
The expansion will span Madhya Pradesh, Rajasthan, Tamil Nadu, Andhra Pradesh, Maharashtra, and Uttar Pradesh, with India Cements expected to lead the southern cluster.
📊 Timeline of Ultratech’s Capacity Expansion Strategy
| Year | Milestone Description |
|---|---|
| 2020–2024 | ₹50,000 crore invested in phased expansions |
| March 2025 | Capacity reaches 183.4 mtpa |
| October 2025 | ₹10,255 crore capex announced |
| FY28 | Target capacity of 240.76 mtpa |
Ultratech’s expansion aligns with India’s cement demand projected to grow at 7–8% CAGR over the next three years.
🗣️ Reactions from Industry Leaders, Analysts, and Market Participants
- Kumar Mangalam Birla: “India is now a commanding force in global cement, and Ultratech leads that charge.”
- Cement Analyst: “This capex cycle is well-timed. It positions Ultratech ahead of peers in capacity and reach.”
- India Cements Executive: “We’re proud to be part of this growth story. Southern India will be a key driver.”
| Stakeholder Group | Reaction Summary |
|---|---|
| Investors | Viewing expansion as long-term value accretive |
| Competitors | Monitoring Ultratech’s regional footprint |
| Policy Makers | Welcoming private investment in infra-linked sectors |
| Analysts | Upgrading earnings outlook for FY26–FY28 |
The company also plans to integrate green cement technologies, waste heat recovery systems, and digital automation across new units.
🧾 Comparative Snapshot: Ultratech vs Peers in Capacity and Capex
| Company | Current Capacity (mtpa) | Capex Announced (₹ crore) | Target Capacity by FY28 |
|---|---|---|---|
| Ultratech Cement | 183.4 | 10,255 | 240.76 |
| Shree Cement | 56.4 | 4,000 | 70.0 |
| Dalmia Bharat | 43.7 | 3,500 | 60.0 |
| India Cements | 15.5 | Part of Ultratech’s plan | 20.0 |
Ultratech’s scale advantage and pan-India reach make it a dominant force in the cement sector.
🧭 What to Watch in Ultratech’s Expansion Cycle
- Project Execution: Timelines for greenfield units in Tamil Nadu and MP
- India Cements Integration: Operational synergies and brand alignment
- Sustainability Metrics: Emission reduction targets and ESG disclosures
- Market Share Impact: Ultratech’s positioning in Tier 2 and Tier 3 cities
The company is expected to release quarterly updates on capex progress and regional commissioning schedules.
Disclaimer
This news content is based on verified corporate disclosures, board announcements, and industry reports as of October 19, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice, financial endorsement, or commercial solicitation and adheres to ethical journalism standards.
