UltraTech’s ₹2,000 Cr Bet on India Cements

UltraTech Cement has announced plans to invest around ₹2,000 crore over the next two years in its subsidiary, India Cements, to drive growth, enhance operational efficiency, and reduce costs.

The capital expenditure will focus on upgrading manufacturing infrastructure and improving energy efficiency. Key initiatives include converting four- and five-stage preheaters to six-stage systems, upgrading coolers, optimising processes to lower heat consumption, and installing 21.8 MW of waste heat recovery systems (WHRS). The company will also invest in digitisation and productivity-led initiatives aimed at improving reliability and reducing power consumption.

As part of its sustainability roadmap, UltraTech said green power consumption at India Cements—covering renewable energy and WHRS—is expected to increase from about 5 per cent in FY25 to nearly 80 per cent by FY29.

India Cements’ total cement capacity is projected to rise to 17.55 million tonnes by March 2027 from 14.75 million tonnes in December 2025.

Alongside the capex programme, UltraTech plans to manage debt levels through the monetisation of India Cements’ non-core assets. During the company’s Q3 FY26 earnings call, management said it has already completed the sale of its coal mining subsidiary in Indonesia, with the proceeds fully realised. Discussions are also underway for the sale of large land parcels that could fetch at least ₹500 crore. “There are a couple of big land parcels under discussion with potential buyers,” said Atul Daga, business head and chief financial officer of UltraTech Cement, adding that the company is also evaluating legal options related to certain attached assets.

The company has already realised over ₹200 crore from earlier asset sales.

For the quarter ended December 2025, India Cements reported standalone total income of ₹1,140 crore, up from ₹913 crore a year earlier. EBITDA turned positive at ₹105 crore, compared with a loss of ₹178 crore in the year-ago period, while loss after tax narrowed sharply to ₹6 crore from ₹409 crore.

News by Rahul Yelligetti.