UltraTech Cement expects the sharp rise in energy cost to be a major challenge for the India’s economic growth in this financial year even as the cement demand expected to register 6-7 per cent growth.
Kumar Mangalam Birla, Chairman, UltraTech Cement, said risks to India’s GDP growth have elevated in FY27 on account of higher energy prices and trade disruptions caused by the West Asia conflict.
Nevertheless, India is expected to remain the fastest-growing major economy with the RBI projecting GDP growth at 6.6 per cent for FY27, he said addressing the shareholders at the company’s annual general meeting on Monday.
The country’s stable macroeconomic position with strong forex reserves and steady path to fiscal consolidation provide some buffer against external shocks.
Private consumption, government capital expenditure, improved trade access owing to the recent free trade agreements, and a stable financial sector will support GDP growth in FY27.
As for the cement sector, volumes are expected to grow 6-7 per cent in FY27 on sustained demand from the housing and infrastructure sectors.
In April, UltraTech commissioned 8.7 mtpa of additional grey cement capacity, taking its total cement capacity beyond the landmark 200 mtpa mark in India.
“The company is now the largest cement company in the world by capacity and by sales volumes, outside of China,” he said.
Maintaining this momentum on long-term value creation, the company has committed investments of Rs 16,000 crore to increase total cement capacity to over 240 mtpa by FY28.
The company is also on schedule to launch our Wires and Cables business by the third quarter of FY27.
Meanwhile, UltraTech Cement has agreed to acquire a 26 per cent equity stake in Solaris Horizon Energy by entering into an Energy Supply Agreement and a Share Subscription and Shareholders Agreement. The company will invest up to ₹27 crore in the special purpose vehicle promoted by Waare Forever Energies, which is developing a 65-MW solar power project in Chhattisgarh. This acquisition is intended to secure solar power on a captive basis for UltraTech plants in Mungeli district.
Published on August 17, 2026
