1 Summary of the business model of the firm
Ultratech Cement Private Limited is one of the leading cement companies in India, 3 rd largest
in the world, excluding China and is a part of Aditya Birla Group. It has numerous cement
plants across India with over 23 integrated manufacturing units, 31 grinding units and 8 bulk
packaging terminals. The company's business model is centred around manufacturing and
selling a wide variety of cement products for various construction needs. Its widespread
market reach, diverse portfolio of products and distribution infrastructure contribute to its
market leadership. UltraTech’s Building Products business is an innovation hub that offers an
array of scientifically engineered products to cater to new-age constructions. UltraTech
developed the UltraTech Building Solutions (UBS) idea to give individual home builders a
one-stop shop for building their homes. The diverse portfolio of products includes Ordinary
Portland, Portland Pozzolana and Portland slag cement in the cement category, Ready mix
concrete (RMC), waterproofing systems, crack fillers and style epoxy grouts. It is a leading
player in the white cement category under the brand name Birla white and is also the largest
concrete manufacturer. UltraTech has built a strong brand reputation for quality and
reliability with a customer-centric approach. Their operations span outside India in Sri Lanka,
UAE, and Bahrain.
2. Summary of the Chairperson’s message
The Aditya Birla Group strongly emphasises Purpose as the motivation for its business
practices across the organisation to guide decision-making and actions. The organisation is
positioned for sustained success by its dedication to Purpose, talent development,
sustainability, and strategic expansion initiatives.
The Chairman highlights the group's contribution to the expansion and development of
India's infrastructure, especially when the government is also pushing infrastructure through
production-linked incentives and increasing private capex, thereby expressing confidence in
the group's future.
The company hit several noteworthy benchmarks, such as producing more than 100 million
tonnes of grey cement and aggressively promoting the circular economy through sustainable
practices. The company driving sustainability across the value chain and delivering value to
all its stakeholders. The company is also tracking its ESG targets and commitments well in
key parameters.
UltraTech is a partner of the World Economic Forum's (WEF) "Moving India" initiative,
which was introduced during the G20 Energy Ministers' conference. WEF launched the effort
with the goal of eliminating emissions from road freight in India.
Sustainability is at the heart of the company's growth. Compared to the commitment of a 27%
reduction by 2032, the CO2 net intensity reduced by 12% in FY 2022–23, plastic negative of
2.44 times and a water positivity of 4.17 times. They have pledged to produce carbon-neutral
concrete by 2023. They are aligned with the goals of the Paris Agreement to limit global
warming to 1.5°C and have a clear Net zero pathway with investments in breakthrough
technologies like carbon capture.
3. Three (or more) highlights/something exceptional that happened with the company
during the year
1) Historical milestone of 100 million tonnes of grey cement production showcasing
remarkable growth and operational efficiency. The company is increasing their operational
presence and eyeing a wide presence and has announced expansion plans specifically in
Central and eastern India.
2) Reducing carbon footprint through innovation by utilising both inland and waterways to
transport phosphogypsum, a byproduct from the cement industry that can be reused in cement
manufacturing. The company has set new benchmarks for its contribution to the circular
economy. In the same way, the company has advanced significantly on the path of energy
transformation by using more green energy—roughly 28% more than renewable (solar +
wind) energy capacity. UltraTech reaffirmed its commitment to promoting material
circularity when it inked a long-term contract with the Steel Authority of India to purchase
2.4 LMT of blast furnace slag annually.
3) A 66% increase in cess on cement imports in Sri Lanka impacted performance in the third
quarter of the financial year. The exports have been hit, and the income from exports
decreased by 21%
4. Some story building from the historical financial highlights
The company is a major growth engine for the Indian economy and is contributing
significantly to the country's infrastructure development with revenues of 11,123 crores and
63,240 crores in EBITDA. Despite the cost pressures due to inflation, rising environmental
concerns and competition, the company has recorded 14% YoY volume growth with a strong
operational performance
