UltraTech close to ambitious 200MT capacity

UltraTech Cement is on the brink of a historic milestone as it moves steadily toward the 200 million tonne per annum (MTPA) capacity mark. With its current grey cement capacity at 192.26 MTPA, the company is preparing to cross the 200 MTPA threshold within 3-4 months—backed by a robust Rs 9,000–10,000 crore investment earmarked for FY26.

“It took UltraTech nearly 35 years to reach 100 MTPA, and just five years to move from 100 to 150 MTPA. Today, our capacity stands at 192.26 MTPA, making us the world’s second-largest cement company by capacity outside China. We remain firmly on track to cross 200 MTPA in FY26,” Managing Director K.C. Jhanwar told Fortune India.

It was UltraTech chairman and industrialist Kumar Mangalam Birla first announced the ambitious goal of achieving 200MTPA capacity at the annual general meeting (AGM) in 2023, when the capacity was around 140 MTPA.

Even as it builds capacity at an unprecedented pace to touch 200MTPA, Jhanwar is pinning his hopes on the rapid expansion of the Indian economy. “The next decade will transform India’s construction landscape in a way we have never seen before. I believe three major shifts will redefine the cement industry—the unprecedented scale of infrastructure development, the rising demand for sustainable construction materials, and the rapid integration of digital technologies,” he told Fortune India.

“India’s infrastructure growth is gathering historic momentum with record investments in highways, metros, ports and industrial corridors,” he added.

Jhanwar pointed out that India’s per capita cement consumption remains significantly lower than the global average, offering tremendous headroom for long-term growth. “For a company like UltraTech, which is deeply embedded in India’s construction ecosystem, this presents a once-in-a-generation opportunity to scale impact while contributing to nation-building in a meaningful way and meeting the emerging needs of the construction sector,” he said.

UltraTech recently acquired Kesoram and India Cements, adding 25.2 MTPA to its portfolio. Financially, the company remained steady despite sectoral headwinds. Net sales rose to Rs 75,955 crore in FY25, while the average EBITDA margin stood at 16.39%. Though net profit dipped to Rs 6,039 crore due to pricing pressure, UltraTech’s capacity utilisation continued to outperform the industry average, supported by its strong market reach and customer-focused distribution network.

Over the past three years, the company has added a record 42.6 MTPA capacity, expanded its ready-mix concrete (RMC) network to 400 plants across 160 cities, and accelerated its digital transformation journey—offering a full-stack phygital ecosystem for homebuilders. Investments in predictive analytics, automation, and digital logistics have reinforced its nationwide operational backbone.

As consolidation reshapes the cement landscape, Jhanwar sees structural opportunity. “Consolidation in the cement industry is a natural outcome of India’s fast-growing market and long-term infrastructure ambitions. As the country’s leading cement manufacturer, we see it as an opportunity to build greater efficiency, increase market depth and improve customer service,” he said. 

On acquisitions, he added, “At UltraTech, acquisitions are not just about increasing capacity—they must be value accretive to the business.”

A defining element of the company’s growth model is its financial discipline. “Even as we execute one of the largest capacity expansion programmes in our sector, we maintain a strong balance sheet and fund a large portion of our growth through internal accruals,” Jhanwar noted.

UltraTech’s roadmap for the next five years rests on three pillars—expanding manufacturing footprint and market reach, scaling sustainability across operations, and driving customer-centric innovation. As it approaches the 200 MTPA landmark, the company is positioning itself not only as India’s largest cement producer but also as a future-ready building solutions leader shaping the country’s long-term construction ecosystem.