Cement demand to benefit from govt's manufacturing, infra push: Birla

UltraTech Cement Chairman Kumar Mangalam Birla says cement demand will grow on the back of government's focus on manufacturing, infrastructure projects, housing, and policy support

Cement demand in India is set to gain from the government’s policy thrust on manufacturing and construction, according to Kumar Mangalam Birla, chairperson of UltraTech Cement, the country’s largest cement producer.

 

Speaking at the company’s annual general meeting on Tuesday, Birla said the manufacturing sector is expected to strengthen further on the back of domestic demand, better capacity utilisation, and policy measures such as the production linked incentive (PLI) scheme and the National Manufacturing Mission.

 

“The construction sector is also poised for robust performance, aided by increased focus on infrastructure projects through Gati Shakti, higher allocation for affordable housing schemes, and the Asset Monetisation Plan aimed to unlock infrastructure funds,” Birla said.

 

Despite risks from global market volatility, geopolitical tensions, and fragmented trade relations, Birla expressed confidence in India’s growth story.

 

“The country is expected to retain its position as the fastest-growing major economy in 2025-26,” he added, citing strong fundamentals, a resilient financial system, and long-term policy focus.

 

Amid this backdrop, UltraTech has advanced its growth plans. Nearly 70 per cent of its capital expenditure is directed towards expansion, with the company now targeting a cement capacity of 200 million tonnes per annum (mtpa) by the financial year 2026 (FY26), one year ahead of its earlier FY27 goal. Its grey cement capacity stood at 192.26 mtpa at the end of Q1FY26.

 

“This acceleration places us on an even stronger and more sustained growth trajectory for the years ahead. I am happy to share that UltraTech is now well and truly poised to become the largest cement-selling company in the world, outside of China,” Birla said.

 

For FY26, UltraTech has guided for ₹10,000 crore in capex, of which ₹2,000 crore has already been spent in the first quarter.

 

In FY25, the company reported revenue of ₹75,955.13 crore, up 7.12 per cent year-on-year (Y-o-Y). Profit, however, fell 13.8 per cent Y-o-Y to ₹6,039.11 crore, weighed down by higher interest and depreciation expenses.

 

During the year, UltraTech added 42.6 mtpa of capacity, 16.3 mtpa through organic expansion and 26.3 mtpa via acquisitions, notably of India Cements and Kesoram Industries. Sales volumes rose 14 per cent Y-o-Y to 135.83 million tonnes.