{
  "id": 276561,
  "title": "Scale reshapes industry economics, says Kumar Mangalam Birla",
  "url": "https://urgent.news/2026/08/07/scale-reshapes-industry-economics-says-kumar-mangalam-birla",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-07T18:43:01.000Z",
  "source": {
    "name": "The Hindu",
    "slug": "the-hindu",
    "url": "https://www.thehindu.com/news/national/tamil-nadu/scale-reshapes-industry-economics-says-kumar-mangalam-birla/article71278308.ece"
  },
  "original_language": "en",
  "account": "Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized that a company's scale can reshape industry economics. In a capital-intensive industry like cement, scale provides certainty to suppliers, incentivizes technology partners to invest, allows logistics providers to optimize, and assures customers to plan ahead and develop deeper relationships.\n\nBirla cited UltraTech Cement's journey as an example. It took 36 years to build the company's first 100 million tonnes of cement capacity, but the next 100 million was added in less than seven years. Today, UltraTech, with over 200 million tonnes of capacity, is the world's largest cement company outside China. In FY25 and FY26 alone, the company commissioned 24.3 MTPA of capacity and acquired 26.3 MTPA, adding more than 50 MTPA of capacity in under two years.\n\nDespite geopolitical tensions disrupting supply chains, fuel costs, and business confidence, UltraTech's operating cash flow increased by 50% in FY26. This performance is the result of two decades spent building a resilient company, Birla noted. Over 7,000 colleagues have spent over two decades with the Aditya Birla Group, demonstrating the significance of commitment in an era of high employee mobility.\n\nBirla stressed that institutions should be judged by the businesses they build and the leaders they create. He believes that the greatest responsibility of an institution is to create a pipeline of talent and give talented people the space and confidence to make bold decisions.\n\nThe Madras Chamber of Commerce and Industry (MCCI) President, Ramkumar Shankar, noted that while the Chamber celebrates its rich history, it must continue to evolve to remain relevant. MCCI highlighted that A.Viswanathan, President of Delphi TVS Technologies Limited, and Murali Vaidyanathan, President of Wheels India Limited, have been elected as President and Vice President, respectively, for the 190th Annual General Meeting.",
  "summary": "Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized at the 109th Annual General Meeting of the Madras Chamber of Commerce and Industry that the scale of a company can reshape the economics of the industry itself. He highlighted UltraTech Cement's growth trajectory, from building its first 100 million tonnes of capacity over 36 years to adding another 100 million in just seven, and subsequently reaching over 200 million tonnes. Birla also noted UltraTech's remarkable increase in operating cash flow by 50% in FY26, achieved through commissioning 24.3 MTPA of capacity and acquiring 26.3 MTPA in under two years, despite geopolitical disruptions and fuel cost fluctuations.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}