UltraTech Cement on Monday announced a capital expenditure (capex) of Rs 965 crore for its modernisation and to almost double the production capacity of its white cement brand Birla White. The Aditya Birla Group company plans to increase the capacity of Birla White from the current 6.5 lakh tonnes per annum (LTPA) to 12.53 LTPA, UltraTech Cement said in a post-earnings statement.
The company’s board at its meeting on Monday approved a capex of Rs 965 crore towards modernisation and the expansion of capacity at Birla White in a phased manner.
“The incremental capacity will be operational in a phased manner,” the company said.
The capacity expansion will help Birla White strengthen its presence in the growing white cement market, reducing its dependence on high-cost imports, it added.
Moreover, UltraTech has also commenced operations from its bulk terminal at Kalamboli, Navi Mumbai, during the quarter. This is the seventh bulk terminal of the company.
“With a capacity to handle 1.2 MTPA (million tonnes per annum) cement and considering the large infrastructure development projects in and around Mumbai, the bulk terminal will strengthen the company to further increase its sales of bulk cement,” the company said.
Cement will be brought in bulk rakes to this terminal from its various manufacturing units.
“This will effectively help in reducing freight cost, with the increase in the usage of rail transportation. This is one more step of the company in reducing carbon emissions and driving sustainable growth,” it said.
The company commissioned Line-II of the Bara Grinding Unit in Uttar Pradesh, having a cement production capacity of 2 MTPA.
“With this expansion, during the financial year 2021-22, the company has commissioned 3.2 MTPA new cement capacity, as planned, taking its total cement manufacturing capacity in India to 114.55 MTPA,” it said.
UltraTech Cement is the third-largest cement producer in the world, excluding China. It is the only company globally outside of China to have over 100 MTPA of cement manufacturing capacity in a single country.
In 2020-21, UltraTech Cement’s consolidated revenue from operation stood at Rs 44,725.80 crore.
