Becoming India’s Number One Cement Manufacturer: The UltraTech Story

From modest beginnings to its recent historic milestone, UltraTech Cement's journey is one for the books. This is the story of how UltraTech became India's number one cement manufacturer and brand.

In April 2024, UltraTech Cement Limited surpassed 150 MTPA production capacity for grey cement. This milestone—more than 150% of the United States' reported cement capacity, and 80% of Europe’s reported cement capacity (as of 2022)—is a result of decades of bold decisions, all aimed at transforming a modest cement company into the global leader it is today.

UltraTech Cement’s story is one of calculated risks, strategic acquisitions, and a historic pursuit of growth. Today, the company stands as India’s largest cement producer and a global powerhouse. 

The 200 MTPA dream

With the recent milestone, UltraTech's journey is far from over. In its recent Q2FY25 financial results, the company highlighted its capacity expansion drive is on a scale that is globally unprecedented in the cement sector. With the completion of the ongoing expansion projects across India by FY27, and receipt of statutory approvals for the acquisitions of Kesoram Cement (10.75 MTPA) and The India Cements (14.45 MTPA), UltraTech’s total cement capacity will surpass 200 MTPA. This ambition is driven by the company’s commitment to growth, based on a robust foundation of strategic expansions and a future-focused vision. 

On 30th October 2023, when the UltraTech Cement’s board approved an investment of INR 13,000 crores towards increasing the capacity by another 21.9 MTPA with a mix of brown field and green field projects, Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group had said, “Over the past seven years, UltraTech has strategically invested over INR 50,000 crores to support India's rapidly changing infrastructure landscape. Our fresh commitment of INR 13,000 crores underscores our deep-rooted belief in India's economic potential. With each investment, we have not only expanded our footprint but also powered India’s needs for housing, roads, and other vital infrastructure…Earlier this year, I had articulated our ambition to reach a capacity of 200 MTPA, and this expansion marks a pivotal step in that direction. With this round of capex UltraTech reinforces its position as one of the largest cement companies in the world and a national champion”.

Cementing Success

2023 marked an extraordinary achievement as UltraTech recorded 100 million tonnes of grey cement sales in a single financial year—just five years after crossing the 100 MTPA production capacity milestone. This feat came on the heels of UltraTech's continued expansion efforts and its transformation from a leading manufacturer of grey cement and ready-mix concrete into a comprehensive building solutions provider. 

Global Expansion and Industry Consolidation

In 2019, UltraTech became the first company outside of China to achieve more than 100 MTPA capacity in a single country, following the merger with Century Textiles & Industries Ltd. This milestone was not just about numbers; it solidified UltraTech’s position as a global cement giant, with a capacity of 116.75 MTPA.

The journey to this point included multiple landmark acquisitions, such as the takeover of Binani Cement in 2018, which boosted UltraTech’s capacity to 102.75 MTPA, and the acquisition of Jaypee Cement in 2017, which expanded capacity by 21.2 MTPA. 

By 2017, UltraTech had become not only the largest cement company in India but also the fourth-largest globally, excluding China.

Aggressive Capacity Building and Innovation

UltraTech’s growth wasn’t just about acquisitions. The company consistently invested in capacity building through greenfield and brownfield expansions. Between 2010 and 2016, UltraTech made significant strides, commissioning new grinding units, expanding its footprint in regions like Chhattisgarh and Karnataka, and making strategic investments in bulk terminals in Maharashtra and Kerala. These efforts pushed UltraTech’s capacity to 66.3 MTPA by 2016, making it the largest single cement company in India at the time.

In 2010, UltraTech also ventured beyond Indian borders, acquiring Star Cement in the Middle East, which added to its capacity and international presence. This period marked the company’s foray into global markets, further enhancing its reputation as a cement powerhouse.

The Pivotal L&T Acquisition

One of the most defining moments in UltraTech’s history was the 2004 acquisition of L&T’s cement business. The controversial takeover, which was met with resistance at the time, became a game-changer for UltraTech. This acquisition not only brought in an additional 30.04 MTPA capacity but also firmly established UltraTech as a major player in the cement industry. 

The company’s capacity stood at 48.9 MTPA by 2008, marking a period of intense growth fuelled by greenfield projects, brownfield expansions, and debottlenecking initiatives.
The Foundation: Vikram Cement and Early Growth

But this remarkable journey began far earlier, in the mid-1980s, when Grasim Industries, part of Aditya Birla Group, established its first cement plant under the name Vikram Cement. Around the same time, Indian Rayon launched Rajashree Cement, marking the group's early ventures into the cement industry. By the late 1990s, the two businesses merged, creating a combined capacity of 8.5 MTPA.

From these humble beginnings, UltraTech’s leadership set its sights on ambitious growth, laying the groundwork for future expansions and acquisitions that would propel the company to global dominance.

Looking Back, Moving Forward

UltraTech’s journey from Vikram Cement to a 150 MTPA colossus is a testament to the vision, strategy, and determination that define the company’s DNA. Over the years, UltraTech has continuously raised the bar, showing what’s possible when a company commits itself to bold ideas and long-term growth. The story of UltraTech Cement is far from over—its next chapter is being written as it marches towards the 200 MTPA milestone, poised to continue its legacy of transforming the cement industry worldwide.