UltraTech targets 240 mtpa capacity by FY28, invests in 65-MW solar supply
UltraTech Cement has committed ₹16,000 crore to lift capacity above 240 mtpa by FY28 after commissioning 8.7 mtpa in April. It will also invest up to ₹27 crore for a 26% stake in Solaris Horizon Energy, which is developing a 65-MW solar project to supply its Mungeli plants in Chhattisgarh.
What happened
UltraTech Cement flagged energy prices and West Asia trade disruptions as FY27 growth risks, while targeting cement capacity above 240 mtpa by FY28. It will
Key facts
- Cement demand expected to grow 6-7% in FY27
- RBI projects India GDP growth of 6.6% in FY27
- 8.7 mtpa additional grey cement capacity commissioned in April
- Total India cement capacity surpassed 200 mtpa
- ₹16,000 crore committed to raise capacity above 240 mtpa by FY28
- Wires and Cables business launch planned in Q3 FY27
- 26% stake acquisition in Solaris Horizon Energy
- Up to ₹27 crore investment
- 65-MW solar project in Chhattisgarh
Why this matters
The 26% Solaris Horizon Energy investment shows how minority renewable-project partnerships can secure strategic power supply without fully owning development risk.
What to watch
- Quarterly cement demand growth versus UltraTech's commissioning schedule and utilization rates.
- Cement price movements, dealer incentives and freight costs in Chhattisgarh, Madhya Pradesh, Maharashtra and eastern markets.
- Execution milestones, tariff terms and commissioning date for the 65-MW Solaris Horizon project.
- Coal, petcoke, diesel and power-price movements amid West Asia supply disruptions.
- Government infrastructure awards, affordable-housing starts and monsoon-related construction interruptions.
- Expand dealer coverage, warehouse throughput and last-mile dispatch capacity in central and eastern India ahead of incremental volumes.
- Use scale to secure contractor, infrastructure-project and ready-mix-concrete accounts through bundled supply and logistics commitments.
- Increase renewable sourcing, waste-heat recovery and alternative-fuel investments to protect margins and meet embodied-carbon expectations.
- Defend regional pricing through targeted trade schemes rather than broad national price cuts if smaller rivals add incentives.