UltraTech Cement Boosts Production Capacity by 1.2 MTPA

21 Mar 2025 , 11:41 AM

UltraTech Cement Ltd’s debottlenecking projects have increased its production capacity by 1.2 MTPA. As part of its capacity expansion programs, the company saw multiple opportunities to improve efficiency and rationalise operations at different locations. These initiatives, upon successful completion and stabilization, have provided an additional production capacity of 1.2 MTPA.

The success of UltraTech Cement includes:

• 0.8 MTPA expansion at Integrated Unit at Hirmi, Chhattisgarh.
• 0.4 MTPA expansion of Roorkee, Uttarakhand (Grinding Unit)

This expansion, that consists of a 1.9 MTPA expansion in Bihar, 1.4 MTPA each in Rajasthan and Madhya Pradesh, 1.5 MTPA in Odisha, increases UltraTech’s domestic grey cement production capacity to 178.86 MTPA. The total cement manufacturing capacity of the company, including overseas capacity, is 184.26 MTPA; while its overseas capacity is 5.4 MTPA. UltraTech is a grey cement major with the largest capacity in India.

Within its most recent investor presentation, the company disclosed its financial goals:

• Internal Rate of Return (IRR): Less than 25%
• RoCE (Return on Capital Employed): >20%
• Its wires and cables mix will be 60:40 in favour of cables.

UltraTech Cement has clarified that it was not examining new business opportunities and doesn’t expect any material pricing pressure in the cement sector. However, the company stated that this capacity increase is a fork in the road toward greater operational efficiency in its existing business rather than a change in its business direction.