Shares of UltraTech Cement Ltd. surged 2% on 3 April after the company announced its plans for the next five years to increase its capacity by 50 million tonnes per annum (mtpa) with a capital expenditure of Rs 32,000 crore.

Aditya Birla Group’s flagship cement company, UltraTech Cement Limited, is today commissioning two new greenfield capacities totalling 5.4 mtpa in the states of Chhattisgarh and Tamil Nadu. This will increase the company’s total cement capacity to 151.6 mtpa.

This capacity is more than 150% of the capacity in the United States and 80% of Europe’s capacity. It took 36 years for the cement business of the Aditya Birla Group, to get to a capacity of 100 mtpa. Over the past two decades, UltraTech has grown 11x, far outpacing the industry growth of 4x.

Over the last 12 months, UltraTech has expanded its capacity by 18.7 mtpa. In addition to that, the ongoing expansion of 35.5 mtpa is actively being implemented across 16 locations.

In addition, the company is in the process of closing the proposed acquisition of Kesoram Cement. This will further augment UltraTech’s grey cement capacity to 198.2 mtpa. UltraTech is committed to a capex of Rs.32,400 crores over the next three years.

UltraTech Cement Limited is the Aditya Birla Group’s flagship cement company. With revenues of USD 7.9 billion, UltraTech is the third largest Cement producer in the world outside of China, with a total Grey Cement capacity of 146.2 mtpa.

It is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete Roadmap announced by GCCA.

However, at 2:28 pm, the shares of Ultratech cement lost all its early gains and were trading 0.20% lower at Rs 10,018.35 on NSE.