UltraTech Cement has outlined a capital expenditure plan of nearly ₹2,000 crore over the next two years to support the growth, operational turnaround, and sustainability transformation of India Cements, following its acquisition of a controlling stake in the company.
The investment will be directed towards modernising manufacturing facilities, improving operational efficiency, and strengthening cost competitiveness across India Cements’ plants. A major focus area is energy efficiency, with plans to install 21.8 MW of waste heat recovery systems, which will help reduce power costs and improve overall plant performance.
In addition to waste heat recovery, UltraTech intends to significantly increase the share of renewable and green power used by India Cements. The contribution of green energy to the company’s total power consumption is expected to rise sharply from around 5 per cent in FY25 to nearly 80 per cent by FY29, driven by a mix of waste heat recovery and renewable energy sources. This shift is aimed at lowering carbon emissions and aligning operations with long-term sustainability goals.
The capital programme also includes capacity expansion initiatives. India Cements’ total cement capacity, which stood at approximately 14.75 million tonnes as of December 2025, is projected to increase to about 17.55 million tonnes by March 2027. This expansion is expected to strengthen the company’s market position, particularly in its core southern markets, while improving economies of scale.
UltraTech has indicated that digitisation, automation, and process optimisation will be key enablers in the turnaround strategy, helping improve productivity and operational visibility across plants. These measures are expected to contribute to better margins and long-term efficiency.
India Cements has already shown early signs of recovery, reporting positive EBITDA in the third quarter of FY26 after experiencing losses in earlier periods. To support the planned investments, UltraTech has monetised certain non-core assets, including the sale of an overseas coal mining subsidiary, and is also exploring further land monetisation opportunities.
The ₹2,000 crore investment programme reflects UltraTech Cement’s strategy to integrate India Cements into its broader operational framework, enhance sustainability performance, and position the business for sustained growth and profitability in a competitive cement market.
