UltraTech Cement Ltd, the flagship company of the Aditya Birla Group, has projected robust growth for India's cement industry, forecasting demand to surpass 640 million tonnes per annum (MTPA) by the financial year 2030. This projection was revealed in a recent investor presentation submitted to stock exchanges.
Cement Demand to Grow at 7-8% CAGR till FY30
According to UltraTech, India's cement demand stood at 424 MTPA at the end of FY24, which concluded on March 31, 2024. Driven by strong infrastructure development and housing projects, the demand for cement is anticipated to grow at a compound annual growth rate (CAGR) of 7-8% from FY24 to FY30, reaching beyond the 640 MTPA mark.UltraTech Cement's Ambitious Expansion Plans
UltraTech is actively expanding its grey cement production capabilities, with significant capacity enhancement underway. By FY27, the company aims to reach a total cement output of 209.3 MTPA. As of FY25, UltraTech has already scaled its capacity up to 182.8 MTPA, including 5.4 MTPA from international operations, a significant increase from 140.8 MTPA reported in FY24.The company's growth strategy includes acquisitions, brownfield expansions, and greenfield projects, with plans to add another 26.5 MTPA capacity in FY26 and FY27.
Nationwide Presence Strengthened
Highlighting its strategic vision, UltraTech stated it is pivoting towards a pan-India presence, currently operating through 82 strategically positioned locations. Additionally, the company maintains 4,432 UltraTech Building Solutions outlets nationwide, offering comprehensive building solutions for retail customers and aiming to increase their wallet share up to 60%.UltraTech Enters Wires and Cables Market
UltraTech Cement recently announced its strategic entry into the wires and cables segment, marking a diversification of its business portfolio. The company plans an investment of ₹1,800 crore over the next two years to establish a state-of-the-art plant in Jhagadia, near Bharuch in Gujarat. Scheduled for commissioning by December 2026, the facility will boast an annual production capacity of 35-40 lakh kilometers, manufacturing a variety of products including low tension, control, instrumentation, flexible, and rubber cables.UltraTech anticipates strong profitability from its wires and cables division, targeting an Internal Rate of Return (IRR) of 25% and a Return on Capital Employed (RoCE) of over 20%. This segment is projected to witness robust growth, estimated at a CAGR of approximately 13% over the next five years.