India’s UltraTech Cement’s investment impact

UltraTech IndiasNo1

UltraTech Cement, member of the Aditya Birla Group and largest cement producer in India, provided insights into their CapEx plans by 2027. As already reported here, with its phase II and III expansions the grey cement capacity in India shall be increased from 133.0 Mta at the end of Dec. 2023 by 46.3 to 179.3 Mta in FY 2027. The average CapEx is with only US$ 72.3 m per 1.0 Mta cement capacity about 2-3 times lower than some years ago. According to UltraTech this is an optimal use of financial resources and provides an expected internal rate of return (IRR) of about 15%. For the third phase of growth of 21.9 Mta announced in Oct. 2023, major orders to key technology suppliers have already been placed and civil work has commenced on some locations.