July 28,2025: UltraTech Cement, India’s largest cement manufacturer and a flagship of the Aditya Birla Group, has announced a capital expenditure (capex) plan of ₹10,000 crore for the financial year 2025-26 (FY26). The investment is aimed at expanding the company’s production capacity, enhancing efficiency, and strengthening its leadership position in the domestic market amid rising demand in the infrastructure and construction sectors.
The planned expenditure will be utilized to add nearly 21 million tonnes per annum (MTPA) of cement production capacity across various greenfield and brownfield projects. Once completed, the expansion will take UltraTech’s total installed capacity closer to the 200 MTPA milestone, reinforcing its status as one of the world’s largest cement producers.
In an official statement, the company said the capex will be allocated toward setting up integrated cement plants, grinding units, clinkerisation projects, and enhancing logistics and supply chain capabilities. A portion of the investment will also be directed toward sustainability initiatives, including the adoption of alternative fuels and energy-efficient technologies.
“This capex plan is aligned with our long-term growth vision and the nation’s infrastructure push,” said Kumar Mangalam Birla, Chairman of the Aditya Birla Group. “It will help us not only meet the growing demand but also continue our focus on innovation, sustainability, and operational excellence.”
The move comes at a time when the Indian cement sector is witnessing robust demand growth, driven by large-scale infrastructure projects, urbanization, and the government’s focus on housing and connectivity. Key initiatives such as the PM Gati Shakti scheme, Bharatmala project, and Pradhan Mantri Awas Yojana are expected to fuel consistent demand for cement in the coming years.
Market analysts have welcomed the announcement, citing it as a timely step to capitalize on favorable macroeconomic conditions. “UltraTech’s capex strategy will provide it with a competitive edge, particularly in high-growth regions. It also indicates the company’s commitment to capacity-led growth and value creation for stakeholders,” said a Mumbai-based cement industry analyst.
The investment will be funded through internal accruals and debt, with the company maintaining a strong balance sheet to support the expansion. UltraTech has a history of disciplined capital deployment, and this latest move is expected to yield significant returns over the medium to long term.
With this announcement, UltraTech Cement continues to chart a bold growth trajectory, underpinned by capacity expansion, digital transformation, and a strong emphasis on sustainability — positioning itself to meet the challenges and opportunities of a rapidly evolving construction landscape.
