2 weeks ago
Rising Energy Costs Pose Risk to India's Growth, Says Birla
India is a big country where many companies make things.
One very big company makes cement, which is used to build houses and roads.
The leader of that company is Mr. Kumar Mangalam Birla.
He told people that energy, like electricity and fuel, is getting more expensive.
When energy costs more, it can make it harder for India's economy to grow.
There is also a conflict happening in West Asia that can disturb trade.
But India is still expected to grow faster than most other big countries.
The country's central bank thinks India's economy will grow by 6.6 percent this year.
The cement company is also building more factories and buying solar power to help make energy.
This helps the company make cement in a cleaner way.
UltraTech Cement chairman Kumar Mangalam Birla said higher energy prices and West Asia conflict trade disruptions pose risks to India's GDP growth in FY27.
The RBI projects India's GDP growth at 6.6% for FY27, with India expected to remain the fastest-growing major economy.
Cement demand in India is expected to grow 6-7% in FY27, driven by sustained demand from housing and infrastructure sectors.
UltraTech commissioned 8.7 mtpa of additional grey cement capacity in April, taking its total capacity beyond 200 mtpa in India.
UltraTech committed Rs 16,000 crore to raise capacity to over 240 mtpa by FY28 and agreed to acquire a 26% stake in Solaris Horizon Energy for captive solar power.
- Who
- Kumar Mangalam Birla, Chairman of UltraTech Cement
- What
- Warned that rising energy costs and trade disruptions pose a risk to India's economic growth in FY27
- Where
- India
- When
- At the company's annual general meeting on Monday, for the financial year FY27
- Why
- Higher energy prices and trade disruptions caused by the West Asia conflict have elevated risks to GDP growth
Key facts
- Company
- UltraTech Cement
- Chairman
- Kumar Mangalam Birla
- RBI FY27 GDP growth projection
- 6.6%
- Expected cement demand growth FY27
- 6-7%
- Current cement capacity
- Over 200 mtpa
- Planned capacity by FY28
- Over 240 mtpa
- Committed investment
- Rs 16,000 crore
- Solar acquisition
- 26% stake in Solaris Horizon Energy, up to Rs 27 crore
Quotes
Kumar Mangalam Birla
Chairman of UltraTech Cement
“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.”
thehindubusinessline.com
“The company is now the largest cement company in the world by capacity and by sales volumes, outside of China.”
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