UltraTech Cement crosses 200 MTPA capacity in FY26

Milestone: 200 MTPA capacity in India

UltraTech Cement, the Aditya Birla Group’s flagship cement company, has crossed 200 million tonnes per annum (MTPA) of installed cement capacity in India. The milestone follows the commissioning of three new grinding units with a combined capacity of 8.7 MTPA. After the latest additions, UltraTech’s domestic capacity stands at 200.1 MTPA. Its consolidated global capacity has reached 205.5 MTPA, including 5.4 MTPA from overseas operations.

UltraTech has positioned this scale-up as a global leadership marker, stating that it is now the world’s largest cement manufacturer outside China. The company has also described itself as the largest cement company globally by sales volume (excluding China) and the second-largest globally by capacity (excluding China). The announcement puts the focus back on capacity-led growth in the Indian cement sector, where demand is closely linked to infrastructure and housing activity.

New grinding units: where they are and why they matter

The newly operational grinding units are located in Shahjahanpur (Uttar Pradesh), Patratu (Jharkhand), and Vizag (Andhra Pradesh). UltraTech has said these sites were chosen to strengthen supply coverage across key markets. The Shahjahanpur unit is aligned with North India’s fast-growing construction corridor. Patratu supports supply in Jharkhand’s industrial belt. Vizag improves access to Andhra Pradesh’s coastal and fast-developing region.

Grinding units are typically used to improve distribution and reduce logistics costs by placing production closer to consumption markets. For cement makers, this can help improve service levels and manage freight intensity, especially when demand is spread across multiple regional clusters.

Capacity snapshot: domestic, global, and overseas operations

UltraTech’s latest milestone highlights the difference between domestic installed capacity and consolidated capacity that includes overseas assets. The company’s overseas capacity of 5.4 MTPA is spread across the UAE, Bahrain, and Sri Lanka, as stated in the provided information. The domestic step-up to 200.1 MTPA is what pushed consolidated capacity to 205.5 MTPA.

The company has also disclosed an operating footprint in India that includes 34 integrated units, 30 grinding units, and 9 bulk terminals. It has said its network covers more than 80% of India’s geography through over 145,000 channel partners.

Speed of expansion: from 100 to 200 MTPA

UltraTech’s capacity build-out has accelerated sharply since it first crossed 100 MTPA. The company took 36 years to reach its first 100 MTPA milestone in 2019. It then added the next 100 MTPA in less than seven years, according to the information shared.

A separate timeline point provided is that UltraTech achieved 150 MTPA in April 2024 after adding 50 MTPA in less than five years. The current phase continues that pace, supported by both organic expansion and acquisitions.

FY25 additions: organic growth plus acquisitions

In FY25, UltraTech expanded capacity by 42.6 MTPA. This included 16.3 MTPA through organic growth and 26.3 MTPA via acquisitions, including India Cements and the cement division of Kesoram Industries. As of March 2025, the company’s consolidated capacity stood at 188.8 MTPA.

In the first quarter of FY26, an additional 3.5 MTPA of grey cement capacity was added, taking total grey cement capacity to 192.26 MTPA. UltraTech has stated it expects to cross the 200 MTPA threshold within FY26, and Chairman Kumar Mangalam Birla said at the company’s AGM that the milestone would be reached by the end of the current fiscal, a year ahead of the earlier FY27 target.

Capex and project pipeline: FY26 and beyond

UltraTech has indicated a significant investment plan to support capacity expansion, sustainability, and logistics. It will complete investing ₹9,000–10,000 crore in the current fiscal (FY26) towards these priorities.

Beyond the current year, the company has said its next phase of growth is underway, backed by capital expenditure of over ₹16,000 crore, intended to take total capacity to over 240 MTPA in the coming years. Separately, UltraTech has reported an investment of ₹10,255 crore to expand cement production capacity by 22.8 MTPA, including that of its subsidiary India Cements Limited. Commercial production from these projects is expected to begin in phases from FY28, taking UltraTech’s total cement capacity to 240.76 MTPA globally.

FY25 operational scale: sales and efficiency indicators

UltraTech reported FY25 grey cement sales of 135.83 million tonnes (MnT). It also reported a cumulative production capacity of 192.26 MTPA for the same period, in the context provided. These figures underline the company’s high utilisation focus and ability to move large volumes across markets, although the article does not provide utilisation percentages.

Market impact: what the 200 MTPA mark changes

Crossing 200 MTPA domestically strengthens UltraTech’s ability to supply multiple regions while reducing dependence on longer-distance dispatches. The added grinding capacity in Uttar Pradesh, Jharkhand, and Andhra Pradesh directly targets major demand zones and industrial corridors.

From an investor perspective, the milestone ties into a broader narrative UltraTech has outlined: expansion of manufacturing footprint and market reach, scaling sustainability across operations, and customer-centric innovation. The company has not quantified expected returns or timelines for individual projects in the provided text, but it has clearly linked ongoing capex to growth and operational readiness.

UltraTech shares also saw near-term attention after the AGM update. According to the provided information, the stock closed 0.7% higher at ₹12,855.70 on the BSE on the day referenced.

Key facts at a glance

Timeline: how UltraTech scaled up

Conclusion

UltraTech’s move past 200 MTPA installed capacity in India marks a major scale milestone, supported by 8.7 MTPA of newly commissioned grinding capacity across three states. With FY26 capex of ₹9,000–10,000 crore and additional projects planned for phased commissioning from FY28, the company has outlined a path to lift global capacity to 240.76 MTPA, with the next capacity updates expected through scheduled project commissioning timelines and future company disclosures.