“Our significant investment in the core infrastructure sector will accelerate the wheels of economic activity and aid the kickstart of the private investment cycle,” Birla said in a message to its shareholders in the company’s annual report.
The company’s CAPEX ambition is fortified both by the strength of UltraTech’s balance sheet and the conviction on India’s inherent growth potential, he added.
The company’s Board of Directors during December of 2020 approved a fresh CAPEX of Rs 5,477 crores towards increasing capacity by 12.8 MTPA with a mix of brownfield and greenfield expansions. The additional capacity will be created in the east, central, and northern regions of the country.
“This expansion is in addition to the Company’s 6.7 MTPA capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal. Commercial production from these capacities is expected to go on stream in a phased manner during FY22 and FY23,” Birla said.
Upon completion of the latest round of expansion, UltraTech’s capacity will grow to 136.25 MTPA, making them the third-largest cement company in the world, outside of China, Birla said in the annual report.
Aditya Birla group’s cement flagship company reported a net profit of Rs 1,775 crore in the January-March quarter of the financial year 2020-21, compared to Rs 3,236.85 crore in the corresponding quarter of the previous fiscal.
UltraTech is the first company in India and the second in Asia to issue sustainability-linked bonds.
“In FY21, UltraTech Company raised US$ 400 million (around Rs 2,900 crores), by way of issuance of senior unsecured US$ denominated notes, in the form of sustainability-linked bonds,” he said.
Sustainable growth is an integral part of UltraTech’s business ethos, he said, adding that It continuously strives to enhance environmental conservation measures while ensuring that business growth and profitability are concomitant with its contribution to societal well-being, Birla added.
Like for many other organisations, the COVID crisis brought out challenges of many forms, Birla said: Our business results convey only a small part of the story of our employee courage, compassion, community spirit and cultural strength.
“Critical business processes such as new line commissioning, new product launches, new system and technology implementation– all happened seamlessly and presented a unique human story of innovation and fortitude bringing alive the values of commitment and passion,” he said.
