Country leading cement maker UltraTech Cement is targetting a production capacity of 200 million tonnes per annum (MTPA) as it looks to become one of the largest cement companies in the world, its Chairman Kumar Mangalam Birla said while addressing the AGM of the company. The company has already commenced work on the next growth phase of adding 22.6 MTPA additional capacity and after its completion, UltraTech will have over 160 MTPA cement production capacity.
“Your Company is now targeting an ambitious goal of achieving a production capacity of 200 million tonnes. This will further reinforce our position as one of the largest cement companies in the world,” said Birla while addressing shareholders on the 23rd AGM of UltraTech Cement.
UltraTech had an installed capacity of 132.4 MTPA in FY22 and then added another 5.5 MTPA in FY23, elevating its total cement production capacity to 137.85 MTPA.
The Aditya Birla group firm has doubled its grey cement production capacity from 66.3 MTPA in FY16 to 132.4 MTPA in FY23.
“This scorching pace of expansion is unprecedented in the sector,” he said.
Terming FY23 a “significant milestone” for UltraTech, Birla said: “We achieved the unique distinction of being the first Indian cement company to record over 100 million tons sales volume in a fiscal year.”
“This achievement is even more remarkable considering that we reached a production capacity of 100+ million tons just a few years ago,” he said.
According to data from the Cement Manufacturers Association, the total all-India installed cement capacity is 541 MTPA.
In FY2022-23, UltraTech had recorded net revenues of USD 7.9 billion (Rs. 63,240 crores) and an EBITDA of USD 1.4 billion (Rs. 11,123 crores), said Birla.
“It has generated positive cash flow even after meeting all ongoing capex, working capital and dividend payment requirements, and has still been being able to deleverage a bit,” it said.
UltraTech is working to build a future-ready business which is thoughtfully crafted to strike a balance between economic growth and its environment, social, and governance (ESG) commitments, he added.
It will endeavour to set benchmarks in every aspect of its business operations. It will continue to harness and build on its core strengths of manufacturing excellence and customer centricity while accelerating on its progress both in leveraging cutting-edge technologies and driving sustainability across its business value chain, said Birla.
“UltraTech is committed to staying ahead of the curve and leading by a mile,” he said.
As per the information available on its portal, UltraTech has 23 integrated manufacturing units, 29 grinding units, one clinker unit and 8 Bulk Packaging Terminals.
It is the third largest cement producer in the world, excluding China.
UltraTech is the only cement company globally (outside of China) to have over 100 MTPA of cement manufacturing capacity in a single country. The Company’s business operations span UAE, Bahrain, Sri Lanka and India.