UltraTech Cement - Volume Growth Robust; Gaining Market Share: Motilal Oswal

Motilal Oswal Report

UltraTech Cement Ltd.’s domestic grey cement capacity/volume compound annual growth rate at 10%/11% over FY14-23 exceeded that of industry (at 5% each) over the same period. This resulted in a considerable market share gain to ~26% in FY23 from ~16% in FY14.

In FY23, UltraTech Cement’s volume growth of 14% YoY exceeded that of industry at ~10% YoY.

UltraTech Cement commissioned 12.4 million tonnes per annum grey cement capacity and 8.1 mtpa clinker capacity (part of phase-I expansion) in FY23, spread across North, East, West and Central India.

In April 2023 it commissioned 2.2 mtpa grinding capacity at Patliputra, Bihar (brownfield expansion and part of Phase-I). Currently, its total domestic grey cement capacity has increased to 129.2 mtpa and clinker capacity has risen to 86.2 mtpa.

Remaining capacity under Phase -I expansion ~2 mtpa is under trial-run and will be commissioned in Q1 FY24.

The company is also working on phase-II expansion of 22.6 mtpa that will entail a capex of Rs 128.9 billion (capex/tonne of $76). This expansion will be completed by H1 FY26E. Post-completion of this expansion, UltraTech Cement’s total domestic grey cement capacity will be at 154 mtpa.

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