About
UltraTech Cement Ltd
UltraTech Cement Limited is the largest manufacturer of Grey Cement, Ready Mix Concrete (RMC) and White Cement in India. It is also one of the leading cement producers globally. With a consolidated Grey Cement Capacity of 132.4 MTPA, it is the third largest cement producer in the world excluding China, and the only one globally (out of China) to have over 100 MTPA of cement manufacturing capacity in a single country. The Company has established a strong market presence in India and internationally. It operate 24 integrated Units, 1 white cement Unit, 3 putty Units, 29 grinding Units, 8 bulk packaging terminals, and 5 jetties across India, UAE, Bahrain, and Sri Lanka. The Company is engaged in the manufacture and sale of Cement and Cement related products
UltraTech Cement has 23 integrated plants, 1 clinkerisation plant, 27 grinding units and 8 bulk packaging terminals. Its operations span across India, UAE, Bahrain and Sri Lanka. UltraTech Cement is also India's largest exporter of cement reaching out to meet the demand in countries around the Indian Ocean and the Middle East. UltraTech Cement is a subsidiary of Grasim Industries Ltd.
UltraTech Cement Ltd. was incorporated on August 24, 2000 as a Public Limited Company with the name L&T Cement Limited as a 100% subsidiary of Larsen & Toubro Limited. In November 2003, name of the Company was changed from L&T Cement Limited to UltraTech Chem Co. Limited.
In the year 2004, pursuant to the Scheme of Arrangement, the Cement business of Larsen & Toubro Ltd was demerged and transferred to the Company with effect from April 1, 2003. In May 14, 2004, the Company acquired four crore Equity Shares of Larsen & Toubro Ceylino (Pvt.) Ltd. from Larsen & Toubro Ltd. at an aggregate consideration of Rs. 23.03 crore.
In July 2004, Grasim Industries Ltd acquired management control of the company and in October 14, 2004, the name of the company was changed from UltraTech ChemCo Ltd to UltraTech Cement Ltd. Also, Narmada Cement Company Ltd became a subsidiary of the company by virtue of the scheme of arrangement for de-merger of cement business of Larsen & Toubro Ltd.
During the year 2005-06, the company increased the production capacity of Cement from 155 lakh tonnes to 170 lakh tonnes. As per the scheme of amalgamation, Narmada Cement Company Ltd was amalgamated with the company. Thus, the entire undertaking of Narmada Cement Company Ltd was transferred to the company with effect from October 1, 2005.
During the year 2007-08, the company increased the production capacity of Cement from 170 lakh tonnes to 182 lakh tonnes. They set up 15 Ready Mix Concrete plants across the country. In March 2008, the Clinkerisation (pyrosection) unit at Andhra Pradesh Cement Works (APCW) was commissioned.
During the year 2008-09, the company increased the production capacity of Cement from 182 lakh tonnes to 219 lakh tonnes as a result of expansion of capacity at the company's unit at Andhra Pradesh Cement Works (APCW) together with a new split grinding unit at Ginigera, Karnataka. They commenced commercial production of cement from their unit in APCW and grinding unit at Ginigera.
During the year, the company commissioned 192 MW captive TPPs at their units at APCW, Hirmi Cement Works (HCW) in Chhattisgarh and Gujarat Cement Works (GCW) in Gujarat in a phased manner. Also, they set up new Ready Mix Concrete (RMC) plants and thus increased the RMC capacity to 4.76 million cubic metres per annum.
During the year 2009-10, the company increased the production capacity from 219 lakh tonnes to 231 lakh tonnes. They incorporated a wholly-owned subsidiary company in UAE in the name of 'UltraTech Cement Middle East Investments Ltd'. In May 2010, the cement business of Grasim Industries Ltd was de-merged and vested in Samruddhi Cement Ltd. In July 2010, Samruddhi Cement Ltd was amalgamated with the company.
During the year 2010-11, the company's wholly-owned subsidiary, UltraTech Cement Middle East Investments Ltd completed the acquisition of ETA Star Cement (ETA) and acquired management control of ETA's operations in the UAE, Bahrain and Bangladesh. The company's capacity stands augmented to 52 MMTPA placing it among the top 10 cement companies in the world due to the merger and acquisition.
On 24 July 2012, UltraTech Cement announced that it has signed an agreement with the shareholders of Gotan Lime Stone Khanij Udyog Private Limited (GKUPL), Rajasthan to acquire 100% equity shares of GKUPL. With this acquisition, GKUPL has become a wholly owned subsidiary of the company.
On 25 March 2013, UltraTech Cement announced that it has commissioned a clinkerisation plant of 3.3 mtpa at Rawan, Raipur, Chhatisgarh and a grinding unit of 1.6 mtpa at Hotgi, Solapur, Maharashtra. On 10 July 2013, UltraTech Cement announced that it has commissioned a clinkerisation plant of 3.3 mtpa at Malkhed in Karnataka.
The Board of Directors of UltraTech Cement at its meeting held on 11 September 2013 approved the acquisition of the cement unit of Jaypee Cement Corporation Limited (JCCL) located in Gujarat, by way of demerger through a Scheme of Arrangement between JCCL and the company. JCCL is a wholly-owned subsidiary of Jaiprakash Associates Limited (JAL). The combined capacity of both the divisions of the Gujarat unit is 4.8 mtpa of cement with 57.5 MW coal based thermal power plant, limestone reserves for over 90 years at current capacity and a captive jetty at Sewagram. The enterprise value is Rs 3800 crore besides the actual net working capital at closing.
On 20 February 2015, UltraTech Cement announced that it has won the auction conducted for a coal block at Bicharpur, situated in Madhya Pradesh. The company's bid of Rs 3,003 per metric ton was the highest. Commercial production from this coal block is expected to commence from FY 2018.
On 16 March 2015, UltraTech Cement announced that it has commissioned a clinkerisation plant of 2 mtpa at Aditya Cement Works, Shambhupura, Rajasthan. The state of the art plant built at a cost of Rs 1250 crore can run on all kinds of fuel.
On 26 March 2015, UltraTech Cement announced that the Rajasthan High Court has by its order dated 25 March 2015 quashed and set aside the order relating to cancellation of the mining lease of the limestone mines in the name of the company's wholly owned subsidiary Gotan Limestone Khanij Udyog Private Limited (GKUPL) and all consequential actions of the Rajasthan state government. The court has directed to handover the possession of mining lease to GKUPL forthwith. This will enable GKUPL to take possession and operate the mines.
On 28 August 2015, UltraTech Cement announced that it has commissioned a bulk terminal with a capacity of 2 mtpa in Pune, Maharashtra. On 22 September 2015, UltraTech Cement announced that it has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Jhajjar in Haryan. The 3rd line at Aditya Cement, Rajasthan commissioned in March 2015 will cater to the clinker requirement of this plant.
On 30 September 2015, UltraTech Cement announced that it has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Dankuni in West Bengal. Clinker requirement of the Dankuni grinding unit will be met through Rawan Cement Works in Chhattisgarh. The grinding unit is strategically located at a distance of less than 50 kms from Kolkata city.
On 26 February 2016, UltraTech Cement announced the withdrawal of the Scheme of Arrangement between the company and Jaiprakash Associates (JAL) for the acquisition of JAL's entire cement business, including mining leases, situated at Bela and Siddhi in Madhya Pradesh as a going concern on a slump exchange basis. The company decided to withdraw the Scheme of Arrangement between the company and Jaiprakash Associates (JAL) after the High Court indicated that based on the recent amendments in the provisions of the Mines and Minerals (Development & Regulation) Act, 1947 (MMDRA) preventing transfer of mines granted other than through auction, and in the absence of any clear timelines for any amendment/clarification in the MMDRA, the court cannot sanction the Scheme. Earlier, UltraTech Cement's Board of Directors had at its meeting held on 23 December 2014 approved a proposal for the acquisition of cement units of Jaiprakash Associates Limited (JAL) located in Madhya Pradesh at an enterprise value of Rs 5400 crore.
On 19 April 2016, UltraTech Cement announced that the company has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Pataliputra in Bihar. The unit will cater to the markets of eastern India.
On 9 May 2016, UltraTech Cement announced that its Board of Directors have approved a proposal for increase in investment limits by Registered Foreign Portfolio Investors from the existing 24% of the paid-up equity share capital to 30% of the paid-up equity share capital of the company.
The Board of Directors of UltraTech Cement at its meeting held on 4 July 2016 approved a Scheme of Arrangement between the company, Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors for acquisition of cement plants for a total capacity of 21.2 mtpa at an enterprise value of Rs 16189 crore. Earlier, the Board had at its meeting held on 31 March 2016 approved signing definitive agreements for the acquisition of the identified cement plants Jaiprakash Associates in the states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh having a capacity of 21.2 mtpa at an enterprise value of Rs 15900 crore. At that time, UltraTech Cement also announced that the company and Jaiprakash Associates have agreed to exclude the 1.2 mtpa capacity in Karnataka as envisaged earlier. Earlier, on 28 February 2016, UltraTech Cement announced that it had entered into a binding Memorandum of Understanding (MoU) with Jaiprakash Associates for the acquisition of its identified cement plants having total capacity of 22.4 mtpa situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka at an enterprise value of Rs 16500 crore.
On 7 July 2016, UltraTech Cement announced that the company participated in the auction of coal linkages for the cement sector in Maharashtra and secured 52,000 TPA of G10 grade coal at basic floor price of Rs 1,510 per ton and premium of Rs 20 per ton. The company also secured coal linkage of 30,000 TPA of grade 8 coal at basic floor price of Rs 2,060 per ton in Maharashtra.
On 26 July 2016, UltraTech Cement announced that the company participated in the auction of coal linkages for the cement sector and secured 95,000 tons of coal at a premium of Rs 80 per ton over base price of Rs 970 per ton from Junadhi Mines in Chhattisgarh.
On 28 July 2016, UltraTech Cement announced that it has participated in the auction of coal linkage for captive power plant sub-sector and secured 27,600 tons of coal at a premium of Rs 150 per ton over notified price of Rs 970 per ton and 19,700 tons of coal at a premium of Rs 150 per ton over notified price of Rs 970 per ton from Dipka Mines (SCDG) in Chhattisgarh.
On 2 August 2016, UltraTech Cement announced that it has participated in the auction of coal linkage for captive power plant sub-sector and secured 1.29 lakh tons of coal at a premium of Rs 100 per ton over floor price of Rs 970 per ton from Gevra Road mines in Maharashtra and 138,200 tons of coal at a premium of Rs 125 per ton over floor price of Rs 970 per ton from New Kusmunda (NKCR) mines in Chhattisgarh.
On 19 January 2017, UltraTech Cement announced that the Competition Commission of India (CCI) in a reference filed by the state government of Haryana for alleged cartelization in August 2012 has passed an order directing the company and other opposite parties to cease and desist' from indulging in the acts/conducts which have been found to be in contravention of the provisions of the Competition Act, 2002. CCI also slapped a penalty of Rs 68.30 crore on the company, being 0.3% of the average turnover for the financial years 2012-13, 2013-14 and 2014-15. UltraTech Cement said at that time that it will take appropriate action after examining the CCI order fully.
On 12 May 2017, UltraTech Cement announced that it has commissioned a 0.3 mtpa slag cement manufacturing capacity at its existing facilities at Patliputra in Bihar. This will bolster its capabilities to meet the growing demand for slag cement from the markets of Easter India.
On 29 June 2017, UltraTech Cement announced that it has completed the acquisition of Jaiprakash Associates' six integrated cement plants and five grinding units spread across Himachal Pradesh, Uttar Pradesh, Uttarakhand, Madhya Pradesh and Andhra Pradesh, with a capacity of 21.2 million tons.
The Board of Directors of UltraTech Cement at its meeting held on 9 December 2017 approved the setting up of a 3.5 mtpa integrated cement plant at Pali, Rajasthan, at an investment of around Rs 1850 crore. Commercial production from the plant is expected to commence by June 2020. The plant will cater to the markets in western Rajasthan where UltraTech does not have a significant presence.
On 6 March 2018, Reserve Bank of India notified increase in limit for investment in the equity share capital of the company by Foreign Portfolio Investors (FPIs) from 30% to 40% of the paid up capital of the company. Earlier, on 9 December 2017, the Board of Directors of UltraTech Cement approved proposal for an increase in the investment limit by Registered Foreign Portfolio Investors, including foreign institutional investors (FIIs) from 30% to 40% of the paid up equity share capital of the company.
On 19 March 2018, UltraTech Cement announced that the company has in-principle concluded commercial understanding with Binani Industries Limited (BIL) for purchase of BIL's entire stake of 98.43% in Binani Cement Limited (BCL) subject to termination of insolvency proceedings against BCL, entering into definite agreement and other customary and regulatory approvals. BIL is independently seeking termination of insolvency proceedings against BCL. The Board of Directors of UltraTech Cement at its meeting held on 19 March 2018 agreed to issue of a comfort letter confirming that the company will provide funds amounting to Rs 7266 crore, being the amount it had offered to the Committee of Creditors in terms of the Resolution Plan submitted by it for acquiring BCL. BIL will use the letter of comfort issued by UltraTech Cement as a support in its application seeking termination of the insolvency proceedings against BCL.
During the fiscal 2019, the company spent over Rs 1600 crore on various Capex initiatives. Also upon the infusion of funds to the extent of Rs 3400 crore, the company acquired UltraTech Nathdwara Cement Ltd. having an installed capacity of 6.25 MTPA and w.e.f. 20th November, 2018 UNCL became a wholly owned subsidiary of UltraTech Cement Ltd.
During FY 2019, Company commissioned a greenfield cement project of 3.5 MTPA at Manavar in Madhya Pradesh. The Scheme of Demerger for acquisition of Century Cement Business was made effective from 1st October, 2019. Consequent to this acquisition, cement manufacturing capacity stands augmented to 114.8 MTPA, including its overseas capacity.
In the FY2020, the Company spent Rs 1595 crore on various Capex initiatives.
During the year 2020, Company commissioned 33MW of Waste Heat Recovery System (WHRS) capacity.
During FY 2022, Company commissioned cement capacity of 3.2 MTPA at Patliputra Cement Works, Bihar; Dankuni Cement Works, West Bengal and Line II of Bara Grinding Unit, Uttar Pradesh, which is the first phase of the 19.5 MTPA capacity expansion announced in
December 2020. It also commenced operations from its 7th bulk terminal at Kalamboli, Navi Mumbai.
The Company launched UltraTech Durafacad, UltraTech, Corroprotect in FY 2023. The Company commissioned 12.4 MTPA of new grey cement capacity during FY 2023 at Dalla, in Uttar Pradesh; Dhule in Maharashtra, Dhar, in Madhya Pradesh; Pali in Rajasthan, Jharsuguda in Odisha, Hirmi in Chhattisgarh and Cuttack in Odisha. It also commissioned a 2.2 MTPA brownfield cement capacity at Patliputra, Bihar, in April 2023. A third Birla White wall care Putty Plant was commissioned during the year at Nathdwara, Rajasthan.
UltraTech Cement Ltd
Chairman Speech
Dear shareholders,
The foundation of our Group rests upon a philosophy of trusteeship, which imagines
corporations as institutions that drive collective prosperity. This philosophy has played
an integral role in shaping our actions for generations, guiding us in our quest to enrich
lives. Over the years, this purpose, though unstated, has been our unwavering anchor.
In FY 2022-23, we formally put in words our Group's Purpose statement. At its heart is
the commitment to enrich lives by building dynamic and responsible businesses and
institutions that inspire trust. Every day, we strive to honour this commitment
through our brands, products, services, solutions, actions, relationships, and
institutions.
Our Purpose statement stands both timeless and fresh against the backdrop of our
extensive history. In a world of increasing opportunity, and also accelerating
uncertainty, our Purpose statement is meant to act as a talisman and remain at the core of
our business decisions.
Our Purpose offers us a unique lens with which to view the world, to bring perspective
to it, and to thrive in it. Guided by this unique perspective, we navigate the evolving
global landscape with resilience and foresight. As we turn our attention to the current
state of the global economy, it is evident that we are charting a course through a
‘new normal'.
Global economy: Finding a new normal
The global economy continues to pull itself out of the pandemic-triggered shock. It
does so amid a complex environment marked by the ongoing conflict in Ukraine, geo-economic
fragmentation, soaring interest rates, and looming risks of a banking contagion.
Reflecting these concerns, the International Monetary Fund (IMF) expects global economic
growth to dip from 3.4% in CY22 to 2.8% in CY23. Developed countries are predicted to
experience a more pronounced deceleration, their aggregate growth stumbling to just 1.3%
in CY23–the slowest pace in a decade, excluding the pandemic-impacted CY20.
On the brighter side, China's economy marches towards normalisation following the
lifting of its Covid-related restrictions.
Both China and India are set to significantly contribute to global economic growth in
CY23, providing a much-needed stimulus as developed economies grapple with challenges.
Meanwhile, global supply chain pressures have largely normalised, helping ease commodity
prices and peak inflation levels in most economies. Central banks, led by the US Federal
Reserve, appear to be nearing the end of their rate-hiking phase, signaling cautious
optimism for the global economy and financial markets. However, vigilance remains crucial
in the face of potential risk events in this fragile environment.
India: The shining star
India's economic narrative paints a much brighter picture. With a government-led push
to infrastructure investments and pragmatic policies such as the production-linked
incentives scheme, private capex has seen a surge. This rise triggers a multi-year boom,
providing valuable support to economic growth in the face of softening global demand.
A decadal reshaping of supply chains is underway. As global corporations start to look
at countries across Asia as part of their China + 1 strategies, India is well positioned
to benefit. Supported by the dynamism of its tech-based ‘new economy' enterprises and
the expanding digitisation across sectors, India's growth momentum continues to
strengthen.
The Reserve Bank of India (RBI) projects India's economy to grow at 6.5% in FY24,
demonstrating the nation's resilience amidst subdued global economic conditions. Inflation
seems to have peaked globally and in India. Easing inflation, robust foreign exchange
reserves, and improving bank assets' quality provide a sizable cushion against potential
destabilising events in global markets.
A key component of the rise of any industrial ecosystem is the presence of a confident
and skilled workforce. This year, India surpassed China in population, and already has the
largest and youngest working age population globally. The lessons learnt from the
transformations of other economies through the last few decades point to the importance of
this demographic dividend.
In the grand theatre of global economic evolution, India stands not as a mere
spectator, but as a charismatic lead.
Aditya Birla Group in Perspective
As India takes centre stage in this grand narrative, the Aditya Birla Group finds
itself in a unique position to contribute to this monumental journey. Our enduring success
amidst global uncertainties stems from our unyielding commitment to purpose, anchored in
principles that are much more than just words. And therefore, the articulation of Purpose
was just the first step. We cultivated a deep understanding of our Purpose across the
depth and breadth of the Group, including the last mile. To transform Purpose from a
concept to an embodied experience, approximately 600 of our senior leaders and managers
took the initiative to receive training and facilitate introspective dialogues on Purpose.
This facilitated their teams to internalise, personalise, and actualise our Purpose in a
manner that was both unique and authentically representative of their roles within our
dynamic Group.
Driven by purpose, the fiscal year 2022-23 stands testament to the breadth and scope of
entrepreneurial ventures we have embarked upon. We are exploring uncharted territories,
backing our conviction with capital and talent. Our robust platform serves as a launch pad
for new initiatives, allowing us to tap into opportunities across traditional and sunrise
sectors. This year, we've emphasised the implementation of our 3-year HR Strategy, guided
by our Purpose Principles. This approach has enabled us to build enduring bonds with our
stakeholders, including key employee segments, like early professionals, and attract
high-quality talent across traditional and digital businesses. As we continue to expand,
our employer brand has empowered us to attract over 11,000 employees in FY 2022-23 - a
diverse pool of new skills and capabilities. Furthermore, our commitment to diversity is
evident in the increasing representation of women in our workforce.
Culture champions have been instrumental in fostering an inclusive and collaborative
environment where every employee feels heard, valued, and respected.
Amidst shifting market dynamics, Learning and Leadership Development continues to be a
key pillar, helping us equip over 35,000 employees with the skills necessary to drive
business outcomes. Over 400 senior leaders, encompassing CEOs, CXOs, and Unit heads, have
bolstered their capabilities in fields such as geopolitical analysis, interpretation of
complex megatrends, inspirational leadership, and agile leadership methodologies. Our
adaptability was made apparent in our diverse learning approaches, both in terms of design
and implementation.
Beyond the traditional classroom environment, we provided learning in various
accessible forms-including bite-sized modules, self-paced curricula, and certification
courses-thereby benefiting 87% of our management cadre employees. With two-thirds of our
workforce under 35, our attention is concentrated on equipping early career employees to
fulfill their evolving aspirations and needs. Through a unique programme titled
‘CareerAbility', these employees have engaged in a series of self-guided learning
bytes, self-assessments, psychometric evaluations, and leadership-led career guidance
sessions. This diverse range of resources has been utilised more than 40,000 times.
Our commitment to the identification and cultivation of talent has remained resolute.
We have recognised over 900 pivotal roles within our Group, for which a robust succession
pipeline is firmly in place.
An avant-garde journey of learning is presently being undertaken to equip our future
C-suite leaders, encompassing roles such as CFOs, CMOs, CIOs, and CHROs, with the skills
and insights required for leadership in a rapidly evolving business landscape. This focus
has significantly enhanced our internal versus external hiring ratio for leadership
positions.
This shift is facilitated by our integrated approach to talent identification,
development, and internal mobility. Over the past three years, we have seen 14% of our
employees and 27% of our talent pool members transition into new roles, bringing our
vision of ‘A World of Opportunities' to life and fostering enduring bonds within our
organisation. This represents our steadfast commitment to talent growth and mobility,
crucial for building a resilient and adaptive organisation.
Your Company's performance
Today, your Company proudly stands at the forefront of India's infrastructure
development, playing a vital role as a national champion and as a key growth engine of the
Aditya Birla Group.
In FY 2022-23, we recorded net revenues of USD$ 7.9 billion (Rs63,240 crores) and an
EBITDA of USD 1.4 billion (Rs11,123 crores). We achieved the distinctive milestone of
producing, dispatching, and selling 100 million tons in FY 2022-23, supported by an
effective capacity utilisation rate of 84% for the year.
Your Company has embarked on an aggressive capacity expansion path, including both
greenfield and brownfield projects, addressing high-growth geographies across the country.
I am pleased to confirm that the capacity expansion programme is progressing on schedule.
This year, we commissioned an additional 12.4 MTPA capacity of grey cement and further
inaugurated a 2.2 MTPA brownfield cement capacity at Patliputra in April 2023.
Your Company has already kickstarted work on the next growth phase of 22.6 MTPA. Civil
construction is in high gear at most sites, with commercial production from these new
capacities expected to roll out phase-wise by FY25/FY26. Upon the successful completion of
all ongoing expansion projects, your Company's capacity will soar to 160+ MTPA. This
growth will solidify our standing as the third-largest cement company globally, outside of
China, and the unrivalled leader in India.
The increase in our production capacity aligns with the strengthening of our brand
equity in the marketplace. It's gratifying to note that your Company has not only
sustained but significantly amplified its brand equity over recent years. As an integrated
building solutions provider offering a broad range of products and services, UltraTech is
well-positioned to harness the burgeoning opportunity in India. The strategic actions
taken over the past few years and the projects currently underway bear testament to our
unwavering commitment to be a strategic partner in India's development journey.
Sustainability
Sustainability is at the core of what we do. It is our stated strategy to integrate
sustainability into the value chain of our operations. During the year, your Company has
taken significant strides in each of its sustainability focus areas of decarbonisation,
energy transition, circular economy, water management and biodiversity management. Aligned
with our ongoing efforts to enhance environmental conservation and energy efficiency, your
Company added 43 MW of WHRS capacity during the year. Consequently, our total WHRS
capacity stands augmented to 210 MW covering ~16% of our present power needs.
This is expected to increase to ~300 MW by the end of FY24, after completing the
ongoing expansions. UltraTech remains focused on accelerating the transition of its
operations towards green energy. UltraTech recently showcased innovation by utilising both
sea and inland waterways to transport a bulk cargo carrier loaded with 57,000 metric
tonnes (MT) of phosphogypsum. This material, a byproduct of the industry, was safely moved
from the Paradip port in Odisha to UltraTech's jetty in the Amreli district's Kovaya in
Gujarat. It will be used in our cement manufacturing operations, demonstrating a safe and
effective method for disposing of this industry waste. This initiative, the first of its
kind in India, is groundbreaking. We are optimistic that it will inspire other cement
companies to adopt similar strategies, thereby contributing to a safe and sustainable
method of dealing with the country's phosphogypsum stockpile, a significant environmental
concern. We are encouraged by the recognition our sustainability efforts have received
both nationally and globally. Notably, UltraTech was recently ranked first in
Sustainability in the Infrastructure and Engineering sector by Sustain Labs Paris (SLP) in
partnership with BW Businessworld.
Furthermore, our commitment to addressing climate change was recognised by the global
non-profit organisation, the Carbon Disclosure Project (CDP). In their 2022 disclosure,
they awarded us an ‘A-' score, placing us in their Leadership category. This accolade
reflects our consistent application of best practices and dedicated efforts in addressing
climate-related issues.
Conclusion
I hold the conviction that our Purpose broadens our perspective, enabling us to pursue
even greater horizons. It serves as the bedrock that propels us towards the future,
emboldening us to venture into more significant commitments and pursuits.
As we grow, we expand our capacity to receive by enhancing our absorption of talent,
technology, and capital. Indeed, with each stride in growth, we deftly weave in more
threads of insights and capabilities, enriching the tapestry of our collective endeavour.
This, in turn, enables us to increase our ability to give back, create impact, and enrich
lives. This virtuous cycle is at the heart of being a successful purpose-driven
organisation.
Your Company doesn't just pride itself on being a purpose-driven entity—it
embodies it, living out this ethos in every endeavour, every relationship, and every
venture. This commitment to Purpose is what continues to steer us towards an even
brighter, more impactful future.
| Kumar Mangalam Birla |
| Chairman |
  Â
UltraTech Cement Ltd
Company History
UltraTech Cement Limited is the largest manufacturer of Grey Cement, Ready Mix Concrete (RMC) and White Cement in India. It is also one of the leading cement producers globally. With a consolidated Grey Cement Capacity of 132.4 MTPA, it is the third largest cement producer in the world excluding China, and the only one globally (out of China) to have over 100 MTPA of cement manufacturing capacity in a single country. The Company has established a strong market presence in India and internationally. It operate 24 integrated Units, 1 white cement Unit, 3 putty Units, 29 grinding Units, 8 bulk packaging terminals, and 5 jetties across India, UAE, Bahrain, and Sri Lanka. The Company is engaged in the manufacture and sale of Cement and Cement related products
UltraTech Cement has 23 integrated plants, 1 clinkerisation plant, 27 grinding units and 8 bulk packaging terminals. Its operations span across India, UAE, Bahrain and Sri Lanka. UltraTech Cement is also India's largest exporter of cement reaching out to meet the demand in countries around the Indian Ocean and the Middle East. UltraTech Cement is a subsidiary of Grasim Industries Ltd.
UltraTech Cement Ltd. was incorporated on August 24, 2000 as a Public Limited Company with the name L&T Cement Limited as a 100% subsidiary of Larsen & Toubro Limited. In November 2003, name of the Company was changed from L&T Cement Limited to UltraTech Chem Co. Limited.
In the year 2004, pursuant to the Scheme of Arrangement, the Cement business of Larsen & Toubro Ltd was demerged and transferred to the Company with effect from April 1, 2003. In May 14, 2004, the Company acquired four crore Equity Shares of Larsen & Toubro Ceylino (Pvt.) Ltd. from Larsen & Toubro Ltd. at an aggregate consideration of Rs. 23.03 crore.
In July 2004, Grasim Industries Ltd acquired management control of the company and in October 14, 2004, the name of the company was changed from UltraTech ChemCo Ltd to UltraTech Cement Ltd. Also, Narmada Cement Company Ltd became a subsidiary of the company by virtue of the scheme of arrangement for de-merger of cement business of Larsen & Toubro Ltd.
During the year 2005-06, the company increased the production capacity of Cement from 155 lakh tonnes to 170 lakh tonnes. As per the scheme of amalgamation, Narmada Cement Company Ltd was amalgamated with the company. Thus, the entire undertaking of Narmada Cement Company Ltd was transferred to the company with effect from October 1, 2005.
During the year 2007-08, the company increased the production capacity of Cement from 170 lakh tonnes to 182 lakh tonnes. They set up 15 Ready Mix Concrete plants across the country. In March 2008, the Clinkerisation (pyrosection) unit at Andhra Pradesh Cement Works (APCW) was commissioned.
During the year 2008-09, the company increased the production capacity of Cement from 182 lakh tonnes to 219 lakh tonnes as a result of expansion of capacity at the company's unit at Andhra Pradesh Cement Works (APCW) together with a new split grinding unit at Ginigera, Karnataka. They commenced commercial production of cement from their unit in APCW and grinding unit at Ginigera.
During the year, the company commissioned 192 MW captive TPPs at their units at APCW, Hirmi Cement Works (HCW) in Chhattisgarh and Gujarat Cement Works (GCW) in Gujarat in a phased manner. Also, they set up new Ready Mix Concrete (RMC) plants and thus increased the RMC capacity to 4.76 million cubic metres per annum.
During the year 2009-10, the company increased the production capacity from 219 lakh tonnes to 231 lakh tonnes. They incorporated a wholly-owned subsidiary company in UAE in the name of 'UltraTech Cement Middle East Investments Ltd'. In May 2010, the cement business of Grasim Industries Ltd was de-merged and vested in Samruddhi Cement Ltd. In July 2010, Samruddhi Cement Ltd was amalgamated with the company.
During the year 2010-11, the company's wholly-owned subsidiary, UltraTech Cement Middle East Investments Ltd completed the acquisition of ETA Star Cement (ETA) and acquired management control of ETA's operations in the UAE, Bahrain and Bangladesh. The company's capacity stands augmented to 52 MMTPA placing it among the top 10 cement companies in the world due to the merger and acquisition.
On 24 July 2012, UltraTech Cement announced that it has signed an agreement with the shareholders of Gotan Lime Stone Khanij Udyog Private Limited (GKUPL), Rajasthan to acquire 100% equity shares of GKUPL. With this acquisition, GKUPL has become a wholly owned subsidiary of the company.
On 25 March 2013, UltraTech Cement announced that it has commissioned a clinkerisation plant of 3.3 mtpa at Rawan, Raipur, Chhatisgarh and a grinding unit of 1.6 mtpa at Hotgi, Solapur, Maharashtra. On 10 July 2013, UltraTech Cement announced that it has commissioned a clinkerisation plant of 3.3 mtpa at Malkhed in Karnataka.
The Board of Directors of UltraTech Cement at its meeting held on 11 September 2013 approved the acquisition of the cement unit of Jaypee Cement Corporation Limited (JCCL) located in Gujarat, by way of demerger through a Scheme of Arrangement between JCCL and the company. JCCL is a wholly-owned subsidiary of Jaiprakash Associates Limited (JAL). The combined capacity of both the divisions of the Gujarat unit is 4.8 mtpa of cement with 57.5 MW coal based thermal power plant, limestone reserves for over 90 years at current capacity and a captive jetty at Sewagram. The enterprise value is Rs 3800 crore besides the actual net working capital at closing.
On 20 February 2015, UltraTech Cement announced that it has won the auction conducted for a coal block at Bicharpur, situated in Madhya Pradesh. The company's bid of Rs 3,003 per metric ton was the highest. Commercial production from this coal block is expected to commence from FY 2018.
On 16 March 2015, UltraTech Cement announced that it has commissioned a clinkerisation plant of 2 mtpa at Aditya Cement Works, Shambhupura, Rajasthan. The state of the art plant built at a cost of Rs 1250 crore can run on all kinds of fuel.
On 26 March 2015, UltraTech Cement announced that the Rajasthan High Court has by its order dated 25 March 2015 quashed and set aside the order relating to cancellation of the mining lease of the limestone mines in the name of the company's wholly owned subsidiary Gotan Limestone Khanij Udyog Private Limited (GKUPL) and all consequential actions of the Rajasthan state government. The court has directed to handover the possession of mining lease to GKUPL forthwith. This will enable GKUPL to take possession and operate the mines.
On 28 August 2015, UltraTech Cement announced that it has commissioned a bulk terminal with a capacity of 2 mtpa in Pune, Maharashtra. On 22 September 2015, UltraTech Cement announced that it has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Jhajjar in Haryan. The 3rd line at Aditya Cement, Rajasthan commissioned in March 2015 will cater to the clinker requirement of this plant.
On 30 September 2015, UltraTech Cement announced that it has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Dankuni in West Bengal. Clinker requirement of the Dankuni grinding unit will be met through Rawan Cement Works in Chhattisgarh. The grinding unit is strategically located at a distance of less than 50 kms from Kolkata city.
On 26 February 2016, UltraTech Cement announced the withdrawal of the Scheme of Arrangement between the company and Jaiprakash Associates (JAL) for the acquisition of JAL's entire cement business, including mining leases, situated at Bela and Siddhi in Madhya Pradesh as a going concern on a slump exchange basis. The company decided to withdraw the Scheme of Arrangement between the company and Jaiprakash Associates (JAL) after the High Court indicated that based on the recent amendments in the provisions of the Mines and Minerals (Development & Regulation) Act, 1947 (MMDRA) preventing transfer of mines granted other than through auction, and in the absence of any clear timelines for any amendment/clarification in the MMDRA, the court cannot sanction the Scheme. Earlier, UltraTech Cement's Board of Directors had at its meeting held on 23 December 2014 approved a proposal for the acquisition of cement units of Jaiprakash Associates Limited (JAL) located in Madhya Pradesh at an enterprise value of Rs 5400 crore.
On 19 April 2016, UltraTech Cement announced that the company has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Pataliputra in Bihar. The unit will cater to the markets of eastern India.
On 9 May 2016, UltraTech Cement announced that its Board of Directors have approved a proposal for increase in investment limits by Registered Foreign Portfolio Investors from the existing 24% of the paid-up equity share capital to 30% of the paid-up equity share capital of the company.
The Board of Directors of UltraTech Cement at its meeting held on 4 July 2016 approved a Scheme of Arrangement between the company, Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors for acquisition of cement plants for a total capacity of 21.2 mtpa at an enterprise value of Rs 16189 crore. Earlier, the Board had at its meeting held on 31 March 2016 approved signing definitive agreements for the acquisition of the identified cement plants Jaiprakash Associates in the states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh having a capacity of 21.2 mtpa at an enterprise value of Rs 15900 crore. At that time, UltraTech Cement also announced that the company and Jaiprakash Associates have agreed to exclude the 1.2 mtpa capacity in Karnataka as envisaged earlier. Earlier, on 28 February 2016, UltraTech Cement announced that it had entered into a binding Memorandum of Understanding (MoU) with Jaiprakash Associates for the acquisition of its identified cement plants having total capacity of 22.4 mtpa situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka at an enterprise value of Rs 16500 crore.
On 7 July 2016, UltraTech Cement announced that the company participated in the auction of coal linkages for the cement sector in Maharashtra and secured 52,000 TPA of G10 grade coal at basic floor price of Rs 1,510 per ton and premium of Rs 20 per ton. The company also secured coal linkage of 30,000 TPA of grade 8 coal at basic floor price of Rs 2,060 per ton in Maharashtra.
On 26 July 2016, UltraTech Cement announced that the company participated in the auction of coal linkages for the cement sector and secured 95,000 tons of coal at a premium of Rs 80 per ton over base price of Rs 970 per ton from Junadhi Mines in Chhattisgarh.
On 28 July 2016, UltraTech Cement announced that it has participated in the auction of coal linkage for captive power plant sub-sector and secured 27,600 tons of coal at a premium of Rs 150 per ton over notified price of Rs 970 per ton and 19,700 tons of coal at a premium of Rs 150 per ton over notified price of Rs 970 per ton from Dipka Mines (SCDG) in Chhattisgarh.
On 2 August 2016, UltraTech Cement announced that it has participated in the auction of coal linkage for captive power plant sub-sector and secured 1.29 lakh tons of coal at a premium of Rs 100 per ton over floor price of Rs 970 per ton from Gevra Road mines in Maharashtra and 138,200 tons of coal at a premium of Rs 125 per ton over floor price of Rs 970 per ton from New Kusmunda (NKCR) mines in Chhattisgarh.
On 19 January 2017, UltraTech Cement announced that the Competition Commission of India (CCI) in a reference filed by the state government of Haryana for alleged cartelization in August 2012 has passed an order directing the company and other opposite parties to cease and desist' from indulging in the acts/conducts which have been found to be in contravention of the provisions of the Competition Act, 2002. CCI also slapped a penalty of Rs 68.30 crore on the company, being 0.3% of the average turnover for the financial years 2012-13, 2013-14 and 2014-15. UltraTech Cement said at that time that it will take appropriate action after examining the CCI order fully.
On 12 May 2017, UltraTech Cement announced that it has commissioned a 0.3 mtpa slag cement manufacturing capacity at its existing facilities at Patliputra in Bihar. This will bolster its capabilities to meet the growing demand for slag cement from the markets of Easter India.
On 29 June 2017, UltraTech Cement announced that it has completed the acquisition of Jaiprakash Associates' six integrated cement plants and five grinding units spread across Himachal Pradesh, Uttar Pradesh, Uttarakhand, Madhya Pradesh and Andhra Pradesh, with a capacity of 21.2 million tons.
The Board of Directors of UltraTech Cement at its meeting held on 9 December 2017 approved the setting up of a 3.5 mtpa integrated cement plant at Pali, Rajasthan, at an investment of around Rs 1850 crore. Commercial production from the plant is expected to commence by June 2020. The plant will cater to the markets in western Rajasthan where UltraTech does not have a significant presence.
On 6 March 2018, Reserve Bank of India notified increase in limit for investment in the equity share capital of the company by Foreign Portfolio Investors (FPIs) from 30% to 40% of the paid up capital of the company. Earlier, on 9 December 2017, the Board of Directors of UltraTech Cement approved proposal for an increase in the investment limit by Registered Foreign Portfolio Investors, including foreign institutional investors (FIIs) from 30% to 40% of the paid up equity share capital of the company.
On 19 March 2018, UltraTech Cement announced that the company has in-principle concluded commercial understanding with Binani Industries Limited (BIL) for purchase of BIL's entire stake of 98.43% in Binani Cement Limited (BCL) subject to termination of insolvency proceedings against BCL, entering into definite agreement and other customary and regulatory approvals. BIL is independently seeking termination of insolvency proceedings against BCL. The Board of Directors of UltraTech Cement at its meeting held on 19 March 2018 agreed to issue of a comfort letter confirming that the company will provide funds amounting to Rs 7266 crore, being the amount it had offered to the Committee of Creditors in terms of the Resolution Plan submitted by it for acquiring BCL. BIL will use the letter of comfort issued by UltraTech Cement as a support in its application seeking termination of the insolvency proceedings against BCL.
During the fiscal 2019, the company spent over Rs 1600 crore on various Capex initiatives. Also upon the infusion of funds to the extent of Rs 3400 crore, the company acquired UltraTech Nathdwara Cement Ltd. having an installed capacity of 6.25 MTPA and w.e.f. 20th November, 2018 UNCL became a wholly owned subsidiary of UltraTech Cement Ltd.
During FY 2019, Company commissioned a greenfield cement project of 3.5 MTPA at Manavar in Madhya Pradesh. The Scheme of Demerger for acquisition of Century Cement Business was made effective from 1st October, 2019. Consequent to this acquisition, cement manufacturing capacity stands augmented to 114.8 MTPA, including its overseas capacity.
In the FY2020, the Company spent Rs 1595 crore on various Capex initiatives.
During the year 2020, Company commissioned 33MW of Waste Heat Recovery System (WHRS) capacity.
During FY 2022, Company commissioned cement capacity of 3.2 MTPA at Patliputra Cement Works, Bihar; Dankuni Cement Works, West Bengal and Line II of Bara Grinding Unit, Uttar Pradesh, which is the first phase of the 19.5 MTPA capacity expansion announced in
December 2020. It also commenced operations from its 7th bulk terminal at Kalamboli, Navi Mumbai.
The Company launched UltraTech Durafacad, UltraTech, Corroprotect in FY 2023. The Company commissioned 12.4 MTPA of new grey cement capacity during FY 2023 at Dalla, in Uttar Pradesh; Dhule in Maharashtra, Dhar, in Madhya Pradesh; Pali in Rajasthan, Jharsuguda in Odisha, Hirmi in Chhattisgarh and Cuttack in Odisha. It also commissioned a 2.2 MTPA brownfield cement capacity at Patliputra, Bihar, in April 2023. A third Birla White wall care Putty Plant was commissioned during the year at Nathdwara, Rajasthan.