Indian cement industry could increase capacity by 80-100 mt by FY25, says K.M. Birla

26 Jul 2022 , 09:14 AM

According to Aditya Birla Group Chairman Kumar Mangalam Birla in the most recent annual report of UltraTech Cement, India’s cement sector would add 80-100 million tonnes (mt) of capacity by 2024-25 (FY25), spurred by higher expenditure on housing and infrastructure.

Birla serves as chairman of UltraTech, the largest cement producer in the nation. The business, according to Birla, 55, who spoke to shareholders, is devoted to meeting the cement demands throughout several regions, especially the eastern and central sections, where new facilities have just been put into service in Bihar, West Bengal, and Uttar Pradesh.

Following last month’s board approval of new capital expenditure (CAPEX) plan of Rs 12,886 crore, UltraTech would increase capacity by about 22.6 mt by FY25.

Following the $10.5 billion purchase of ACC and Ambuja Cements from Holcim AG by Adani Group in May, the company tried to prepare for increased competition in the industry with the announcement of CAPEX.

After UltraTech, Adani had moved up to the No. 2 spot in the local cement market thanks to the purchase. Adani’s installed capacity in the nation is 70 million tonnes per annum (mtpa), compared to UltraTech’s 120 mtpa.

According to Birla, UltraTech’s next wave of growth would increase its capacity to 159.25 mtpa, solidifying its position as the third-largest cement manufacturer in the world outside of China. Birla highlighted the difficulties facing businesses in India and throughout the world as a result of the Russia-Ukraine crisis.

He said that the recent supply-chain interruptions brought on by the war in Ukraine and the ensuing economic sanctions have replaced earlier disruptions brought on by lockdowns brought on by the virus.

He emphasized that one such concern was inflation, which was causing dramatic increases in food and gasoline prices across many nations. According to him, central banks were compelled to aggressively raise interest rates in response to rising prices.