UltraTech Cement Capacity Expansion Reshapes Supply

India’s cement supply base is expanding further as UltraTech Cement has brought 4.6 million tonnes per annum (MTPA) of additional capacity online across Andhra Pradesh, Jharkhand and Rajasthan. The move takes its domestic grey cement capacity to 204.7 MTPA and comes as housing, infrastructure and urban construction continue to support cement consumption across the country.

The largest addition is a 3.6 MTPA greenfield integrated facility at Petnikota in Andhra Pradesh. The remaining 1 MTPA has come from debottlenecking existing plants at Visakhapatnam, Patratu and Nathdwara. Debottlenecking increases output from existing assets by removing production constraints, generally requiring less new land and infrastructure than building an entirely new plant. For regional markets, the expansion could improve the availability of cement as construction activity grows across housing, transport infrastructure, industrial projects and urban development. India produced 491.4 million tonnes of cement in FY26, an 8.6% increase from the previous year, while industry capacity additions are accelerating in response to expected demand from infrastructure and housing.

The scale of the latest addition also highlights how quickly cement manufacturing is expanding alongside India’s urbanisation and infrastructure investment. Industry estimates indicate that cement producers could add around 150–160 MTPA of capacity between FY25 and FY28. Such expansion can support construction supply chains, but it also increases the importance of locating plants and transport networks efficiently to limit freight intensity and pressure on surrounding regions. Environmental performance remains an important part of that equation. Cement production is energy-intensive and creates significant process emissions, making capacity growth inseparable from the sector’s decarbonisation challenge. The International Energy Agency says reducing cement emissions will require greater material efficiency, alternative fuels, supplementary cementitious materials and carbon capture technologies.

UltraTech’s own recent disclosures show that its wider manufacturing strategy includes green power, waste heat recovery and electric heavy-duty vehicles. In Q1 FY27, the company reported 434 MW of installed waste heat recovery capacity and a 47% green-power mix. These measures are relevant because expanding output without improving energy and emissions performance could increase the environmental burden of construction growth. With the latest commissioning, UltraTech’s global cement manufacturing capacity, including its overseas operations, has reached 210.1 MTPA. The next test for the industry is therefore not simply adding tonnes, but matching new supply with efficient logistics, lower-carbon production and the long-term infrastructure needs of rapidly growing cities.

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UltraTech Cement Capacity Expansion Reshapes Supply