UltraTech Cement is stepping up its play in southern India, with the region emerging as a critical growth engine for the country’s largest cement maker.
According to analysts, the company has increased the south’s share of its total grey cement capacity to about 27%, compared with 16% in FY23, while its share of the industry’s capacity in the region has more than doubled to nearly 25% over the same period.
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In its Q1FY26 earnings call, the company voiced optimism about pricing and profitability in south India despite the spate of capacity additions over the past two years. It has used a mix of organic expansions and acquisitions to cement its presence across Andhra Pradesh and Tamil Nadu.
UltraTech’s acquisitions in the region includes India Cements and Kesoram Cement, both of which have significant capacity and presence in the southern states of the country.
Its focus on the lucrative, though competitive, south Indian market comes at a time when the flagship Aditya Birla company is undertaking a capacity expansion exercise. At its FY25 annual general meeting, chairman Kumar Mangalam Birla said UltraTech is set to achieve its target capacity of 200 million tonne per annum (MTPA) by the end of the current fiscal, a full year ahead of the deadline it set.
“Based on the ongoing capacity expansions, the company’s domestic grey cement capacity is estimated to rise to 212.2 MTPA by FY27 from 183.4 MTPA in FY25,” analysts from Motilal Osawal noted, indicating that the cement maker is already setting the foundation for the next phase of capacity expansion.
This also indicates that competition between the top two players — UltraTech and Ambuja Cements— will continue as both vie for a meatier share of the market.
UltraTech’s expansion will include projects in Kalaburagi, Chittorgarh in Rajasthan, and Neemuch/Sidhi in Madhya Pradesh, along with associated grinding units, Motilal Oswal added.
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The expansion will go hand-in-hand with its cost optimisation exercise. UltraTech Cement has steadily improved its operational efficiency in recent years through a combination of lower energy use,
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