UltraTech Cement gains on announcement of capacity expansion of Rs 5,477 crore

UltraTech Cement, an Aditya Birla Group flagship company, announced on Thursday, a capital expansion of 12.8 MTPA with a mix of brownfield & greenfield expansion in the fast-growing markets of east, central & north regions.

The company has made an investment of Rs 5,477 crore for the expansion. Upon completion, the company’s capacity will increase to 136.25 MTPA, making it the third-largest company in the world, outside China.

The commercial production from the new capacities, including 6.7 MTPA expansions underway in Uttar Pradesh, is expected to be operational from Q4FY23 in a phased manner.

The cement industry is returning to normalcy after the gradual relaxation in lockdown. Given the company’s pan India presence coupled with new additions in capacity, it will be able to support the rising demand for cement in the country.

UltraTech Cement is the largest manufacturer of grey cement, ready mix concrete (RMC), and white cement in India. The company enjoys a 26 per cent market share in cement production.

At around 2 pm, its share was trading at 3.29 per cent higher at Rs 5,053.20. It recorded an intraday high of Rs 5,198.30 and an intraday low of Rs 4,962.45 on BSE.