UltraTech expansion plans suggest higher competition likely in cement biz

Other key players have also announced plans to significantly raise capacities

The entry of the Adani Group into the cement sector, with its buyout of Ambuja and ACC, is bound to have major repercussions. Adani would hold the second-largest market share once the acquisitions are completed in the next 6-9 months.

The largest player in the industry, UltraTech Cement, is gearing up for stiffer competition by clearing the capex for an addition of 22.6 million tonnes (MT) of capacity. The UltraTech board has just cleared a capital expenditure plan of around Rs 12,900 crore (working out to approximately Rs 5,700 per tonne). This will include both greenfield and brownfield expansions. 

UltraTech’s current grey