New Delhi, Jun 2 (PTI) Leading cement manufacturer UltraTech Cement Ltd on Thursday announced to invest Rs 12,886 crore (around USD 1.65 billion) to add 22.6 MTPA capacity in its total production, with a mix of brownfield and greenfield expansion.

The board of the Aditya Birla Group firm in a meeting held on Thursday approved the expansion plans, said an UltraTech Cement in a regulatory filing.

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"The Board of Directors at its meeting held today approved capex of Rs 12,886 crores towards increasing capacity by 22.6 MTPA with a mix of brownfield and greenfield expansion," it added.

The investment, which will cater to the "future growth" of the company, will be funded through a mix of debt and internal accruals, UltraTech said.

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"This would be achieved by setting up integrated and grinding units as well as bulk terminals. The additional capacity will be created across the country," it noted.

Commercial production from these new capacities is expected to go on stream in a phased manner by FY25, according to UltraTech.

At present, UltraTech's production capacity is 119.95 Metric Tonnes Per Annum (MTPA) and after the completion of the sanctioned expansion along with the current expansion programmes, which are estimated to be completed by FY23, it would go up to 159.25 MTPA.

"Upon completion of the latest round of expansion, the company's capacity will grow to 159.25 MTPA, reinforcing its position as the third-largest cement company in the world, outside of China," it said.

Aditya Birla Group Chairman Kumar Mangalam Birla said this ambitious capacity expansion plan is a significant milestone in the ongoing transformational growth journey of UltraTech.

"The company has more than doubled its capacity over the last five years and is committed to meeting India's future needs for housing, roads, and other infrastructure. This investment is backed by a strong conviction on India's growth potential as well as a deep and nuanced understanding of the market dynamics of the cement industry," he said.

UltraTech has 22 integrated manufacturing units, 27 grinding units, one clinkerisation unit and 8 bulk packaging terminals. It has a network of over one lakh channel partners across the country and has a market reach of more than 80 per cent.

Its nearest rival was Holcim India, which with its two Indian units - Ambuja Cements and ACC, has a combined installed production capacity of 70 MTPA.

Last month, Holcim India's swiss parent company had signed a binding agreement with the Adani Group to sell its business in India in a deal estimated to be around USD 10.5 billion.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)