UltraTech is a part of Aditya Birla Group (ABG) – one of India’s largest and most reputable conglomerates and a long-standing client of IFC in Egypt, India, Thailand and Indonesia. ABG operates in 33 countries with more than 133,000 employees worldwide. The group has diversified business interests in viscose staple fiber, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial services, telecom, BPO and IT services. Grasim Industries Limited of the Aditya Birla Group has a 60.3% stake in UltraTech.
UltraTech, a listed company, has 12 integrated cement manufacturing plants, 15 grinding units, 5 bulk terminals and more than 100 ready mix concrete plants, spanning India, UAE, Bahrain, Bangladesh and Sri Lanka with 52 million tons per annum (Mtpa) capacity.

The total project cost is estimated at US$297 million. IFC has been requested to provide a loan of up to US$100 million for its own account.

100.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	100.0
Equity

* These investment figures are indicative

The integrated plant is located near Rawan village, Tehsil Sigma in Chhattisgarh.

Employment generation: The Project will create direct and indirect employment in Chhattisgarh. The Project will provide skilled and unskilled jobs during the construction phase. In addition, the Project will create a large number of indirect jobs in the transportation and delivery sectors.

Increased local supply chain and consumption of local goods and services: The Project will create new business opportunities in the local economy due to increased demand for the supply of raw materials and provision of transportation and delivery services

Other benefits to local communities: The Company has established health and medical facilities in India to benefit about 200,000 people and manages schools in India where more than 6,500 students attend. The local communities will benefit from the Company''s corporate social responsibility initiatives.

Positive climate change impact: As a member of the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD), a global association of about 200 companies dealing exclusively with business and sustainable development, UltraTech is committed to sustainable development. Its investment in energy efficient initiatives has resulted in specific heat consumption in its clinker production being one of the lowest. The Company has taken the lead in the cement sector in India to co-process industrial and agricultural wastes as fossil fuel substitutes in its plants. The Company is among the early proponents of waste heat recovery and alternative fuel usage in cement operations in India. The Project includes a waste heat recovery system, which will reduce energy usage.

Higher level of environmental and social performance: By complying with IFC''s performance standards and the World Bank Group''s environmental, health, and safety (EHS) guidelines, UltraTech will achieve higher environmental and social standards, which should increase its reputation, reduce the risk of adverse impacts on local communities, and increase the credibility of the private sector with respect to corporate social responsibility.

Private sector development: The success of the Project will send a positive signal to other investors considering investments in Chhattisgarh, a low-income state where foreign direct investment (FDI) is limited. The Project is expected to set environmental and social standards that can be replicated by other cement producers.

Increase in domestic revenues: The Project is expected to contribute to the domestic economy through increased tax revenues.

Long-term partnership: UltraTech is keen to develop a strong relationship with IFC as the Company has begun implementing its overseas expansion strategy. The Company wants to select IFC as its long-term strategic partner as it values IFC''s long-term financing, which is suited to the capital intensity and cyclicality of the cement industry, to support projects in emerging markets, including fragile and conflict-affected countries.

Environmental and social standards/implementation and various advisory services: As a member of the Cement Sustainability Initiative (CSI), a voluntary CEO-led global program initiated by leading cement companies in 1999, and operating under the auspices of the WBCSD, UltraTech has integrated sustainable development into its business strategies and operations, as it seeks strong financial performance with an equally strong commitment to social and environmental responsibility. The Company has co-chaired CSI''s Low Carbon Technology Roadmap for Indian Cement Industry, a carbon emissions reduction initiative in India, supported by IFC. The Company is among the early proponents of waste heat recovery and alternative fuel usage in cement operations in India.

In this context, UltraTech''s management wants to further reduce its carbon footprint and to adopt best practice standards for environmental and social aspects while the Company already has high standards. The management believes that IFC can play a significant role in helping the Company achieve these goals.

IFC has already begun working with UltraTech to identify resource efficiency opportunities for the Company to further reduce its carbon footprint. In addition, IFC is exploring the possibility of providing UltraTech with various advisory services in such areas as alternative fuel usage as well as corporate social responsibility initiatives.

This is a Category A project according to IFC’s environmental and social review because the project has the potential for resulting in significant adverse environmental and social impacts that will be diverse and irreversible.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.