UltraTech Cement to Sell 6.49% Stake in India Cements – Will Aditya Birla’s Strategy Face a Setback?

UltraTech Cement, the country's largest cement manufacturer, has decided to sell 6.49% stake in its unit India Cements. This company is owned by Aditya Birla Group. The stake in the cement company will be sold through Open Market Offer (OFS). This proposal was approved by the committee of directors and officers of the company. UltraTech took control of India Cements in the month of July last year. At that time the price of this deal was not disclosed.

UltraTech Cement to Sell 6.49% Stake in India Cements

Company Chairman Kumar Mangalam Birla said during the AGM that UltraTech will cross the production limit of 200 million tonnes per annum (MTPA) by March 2026. Last year, the company increased its capacity by 42.6 MTPA. Out of this, 16.3 million tonnes per annum capacity was increased by the company's increased production. The remaining 26.3 million tonnes capacity was increased by the acquisition of India Cements and Kesoram Industries. By March 2025, UltraTech's total production limited had increased to 188.8 MTPA.

UltraTech’s Growth Target: 200 MTPA by 2026

Apart from this, UltraTech's total revenue in FY 2025 was Rs 75,955 crore. Birla said during the AGM that UltraTech is moving towards becoming the world's largest cement company outside China. By June 2025, the company's grey cement production limited was 192.26 MTPA, white cement capacity was 1.3 MTPA and white putty capacity was 2.0 MTPA. In the first quarter of FY 2026, the company's revenue was Rs 21,275 crore. India is the second largest cement producing country in the world. India has a 30.8% share in the global market. According to estimates, the demand for cement in 2025 was 435 MTPA, which can reach 620 MTPA by 2030.

Will Birla Group's planning suffer a setback?

Birla says that India's GDP will grow at a rate of 6.5% during FY 2026, which will keep it as the fastest growing economy in the world. Let us tell you that there is a competition between Aditya Birla Group and Adani Group to become number one in the country's cement industry. Both the groups are acquiring different companies to increase their production limits and gain market share. Now when Aditya Birla Group is planning to sell the stake of India Cements, will the planning of Birla Group get a setback? Let's take a look at the figures-

UltraTech Cement is the largest cement company in the country

At present, UltraTech Cement, a company of Aditya Birla Group, is the largest cement company in the country. Its production limit is 192.26 MTPA, which is much more than Adani Group. UltraTech recently acquired Kesoram Industries and India Cements. After this move, its position in the South became stronger. The company's target is to reach the production limit to 200 MTPA. Apart from this, Adani Group entered the cement industry by buying Ambuja Cements and ACC Limited in 2022.

The current capacity of Adani Group is 102.95 MTPA and the target is to increase it to 140 MTPA by 2028. Adani has acquired companies like Sanghi Industries, Penna Cement and Orient Cement. An investment of Rs 25,000 crore has been made by the company. UltraTech's market share and production limit is more than Adani, but Adani's aggressive policy and Birla's stake sale may reduce the gap between the two.

Comparison Table - UltraTech Cement vs Adani Cement