UltraTech Cement Commissions ₹2,650 Crore Petnikota Plant in Andhra Pradesh

UltraTech Cement has commissioned its ₹2,650 crore Petnikota Cement Works in Andhra Pradesh’s Nandyal district, completing the project in just 14 months from the start of construction. The new facility strengthens the company’s manufacturing presence in the Rayalaseema region and adds significant cement production capacity to support the state’s construction and infrastructure requirements.

The integrated cement plant is located in Petnikota village in Kolimigundla mandal. It has an annual clinkerisation capacity of 3.3 million tonnes and cement dispatch capacity of 3.6 million tonnes. Construction began in May 2025, with commissioning completed in October 2026, according to information shared by Andhra Pradesh minister Nara Lokesh.

2,650 Jobs Expected from the Project

The facility is expected to generate 650 direct jobs and another 2,000 indirect employment opportunities, taking the total employment associated with the project to 2,650. The investment adds to Andhra Pradesh’s industrial base while supporting activity across transportation, material handling, maintenance and other services linked to cement manufacturing.

The plant’s location in Rayalaseema is also significant for regional construction supply. Cement demand from housing, infrastructure and industrial development makes additional local production capacity important for meeting market requirements and supporting logistics efficiency.

Renewable Energy and Water Conservation

UltraTech has incorporated several resource-efficiency measures into the plant’s design. The facility is planned to operate without using groundwater and will draw on water conservation and recycling systems. Its energy infrastructure includes a 35 MW hybrid wind and solar power system supported by battery storage, along with a 20 MW waste heat recovery system.

The plant will not have a captive thermal power facility. It also incorporates systems designed to use plastic and municipal waste as alternative fuels, while electric vehicles will be used for mining and clinker transportation. Covered raw material storage and an extensive green belt form part of the facility’s environmental measures.

The plant will manufacture composite cement using slag and fly ash, materials that can help reduce reliance on clinker in cement production.

Automation and Production Capacity Expansion

The facility features an automated robotic laboratory, real-time material analysis and process-monitoring systems intended to support quality control and operational efficiency. Digital logistics infrastructure includes radio-frequency identification-based vehicle tracking and unmanned weighbridges.

The commissioning adds to UltraTech’s broader capacity expansion programme. The company reported domestic grey cement capacity of 204.7 million tonnes per annum as of September 2026, with global capacity reaching 210.1 million tonnes per annum, including overseas operations.

The Petnikota plant strengthens UltraTech’s footprint in Andhra Pradesh while combining additional production capacity with renewable energy, waste recovery and water conservation measures.