UltraTech Commissions ₹2,650 Crore Cement Plant in Andhra Pradesh
Amaravati | October 20, 2026: UltraTech Cement has commissioned its new Petnikota Cement Works in Andhra Pradesh’s Nandyal district, strengthening its manufacturing footprint in the Rayalaseema region. Built with an investment of around ₹2,650 crore, the integrated facility adds significant clinker and cement capacity while bringing a fresh push toward renewable-energy-led manufacturing.
The plant, located at Petnikota village in Kolimigundla mandal, has a clinkerisation capacity of 3.3 million tonnes per annum (MTPA) and a cement dispatch capacity of 3.6 MTPA. Construction began in May 2025, with the facility commissioned within about 14 months of the groundbreaking ceremony.
₹2,650 Crore Investment Adds Major Cement Capacity
The Petnikota facility represents a substantial investment in Andhra Pradesh's industrial and infrastructure ecosystem. Its 3.6 MTPA cement dispatch capacity will expand UltraTech's ability to serve construction and infrastructure demand across the region.
The project also strengthens the company’s presence in one of Andhra Pradesh’s key industrial belts, where demand for cement is closely linked to housing, roads, commercial development and other infrastructure projects.
650 Direct Jobs and 2,000 Indirect Opportunities
The new cement works is expected to generate around 650 direct jobs and another 2,000 indirect employment opportunities.
Beyond employment, the commissioning is likely to support local economic activity through transportation, logistics, maintenance, ancillary services and other businesses connected to the plant's operations.
Plant Designed Around Renewable Energy
One of the key features of Petnikota Cement Works is its energy setup. The plant is equipped with a 35 MW hybrid wind and solar power system with battery storage, along with a 20 MW waste heat recovery system.
UltraTech said the facility is designed to operate on 100% green energy and does not rely on a captive thermal power plant. The plant also does not use groundwater for its operations.
This makes the project significant from a real estate and infrastructure perspective, as large industrial investments increasingly face pressure to balance capacity expansion with resource efficiency and environmental considerations.
Automation to Improve Production and Logistics
The facility incorporates several digital and automated systems aimed at improving operational efficiency.
These include RFID-based vehicle tracking, unmanned weighbridges, an automated robotic laboratory, automatic sampling and analysis systems, and technology for real-time process monitoring and optimisation.
Such systems can help streamline plant logistics while improving production consistency and reducing manual intervention in critical processes.
What the Project Means for Andhra Pradesh
The commissioning comes at a time when construction and infrastructure activity remains an important driver of demand for building materials. A large-scale cement facility can strengthen the regional supply chain and support projects requiring substantial cement volumes.
For property developers and investors, increased industrial capacity can also be an important indicator to watch because employment generation, logistics activity and infrastructure investment can gradually influence surrounding commercial and residential development.
What Happens Next
With Petnikota Cement Works now operational, UltraTech will focus on ramping up production and integrating the new capacity into its wider manufacturing and distribution network.
For Nandyal and the surrounding Rayalaseema region, the larger impact will likely emerge over time through employment, industrial activity, transportation demand and supporting businesses linked to the ₹2,650-crore investment.