The investment in a core infrastructure sector will accelerate the wheels of economic activity and aid the kickstart of the private investment cycle, says Kumar Mangalam Birla, Chairman, Aditya Birla Group.

                                     

Aditya Birla group's flagship cement company, UltraTech Cement, on Thursday announced Rs 5,477 crore investment towards 12.8 million tonnes per annum (MTPA) capacity expansion. The investment in the infrastructure sector will boost economic activity and kickstart the private investment cycle, the company said, adding that it is aligned with the government's "Atmanirbhar Bharat" programme.

"The board of directors at its meeting held today, approved increasing capacity by 12.8 mtpa with a mix of brown field and green field expansion," UltraTech Cement said in a press release.  

The additional capacity will be created in the fast-growing markets of the east, central and north regions of the country, it said.

Kumar Mangalam Birla, Chairman, Aditya Birla Group said "This significant investment in a core infrastructure sector will accelerate the wheels of economic activity and aid the kickstart of the private investment cycle. The capital outlay, given the current economic backdrop, is aligned with the government's Atmanirbhar Bharat programme."

He added that "The cement industry has been witnessing healthy volumes post relaxation of lockdown, on the back of the government's thrust on infrastructure, underlying demand from the rural economy and individual home builders. Given its pan-India presence which will be further strengthened by the capacity expansion, UltraTech will be well positioned to support the rising demand for cement in the country."

The company said this expansion includes the existing approval for the cement plant at Pali in Rajasthan, in addition to its 6.7 mtpa capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has picked up pace and is expected to get commissioned by FY22, in a phased manner.