UltraTech Cement Ltd. has announced plans to scale up its electric vehicle fleet to more than 600 heavy-duty electric trucks by December 2026 as part of its supply chain electrification strategy. According to the latest press release dated September 2, 2026, the company has signed service contracts with major electric vehicle manufacturers including Tata Motors, Ashok Leyland, IPLTech, Energy in Motion and Sany, along with their subsidiaries and third-party logistics providers. The total fleet will transport approximately 5 million tonnes of clinker and other key materials annually across Gujarat, Uttar Pradesh, Madhya Pradesh, Rajasthan, Chhattisgarh, Maharashtra and Odisha. As reported by Business Standard, this initiative is part of the company's commitment to scaling up its supply chain electrification efforts.
The electric fleet deployment is expected to deliver significant environmental benefits once fully operational. The 600-plus electric trucks will reduce net annual carbon dioxide emissions by more than 1.17 lakh tonnes and displace the equivalent of 39 million litres of diesel each year. UltraTech's electrification strategy covers its entire supply chain from mine-to-plant movement to inter-plant transportation of clinker and other key materials. The company currently operates more than 850 trucks as part of its green logistics operations, including CNG and electric trucks. Commenting on the initiative, Mr K C Jhanwar, Managing Director stated that "UltraTech is expanding sustainability beyond its plants by adopting greener logistics solutions. This large-scale transition to green logistics underscores our focus on decarbonising every link of our value chain and supports our commitment to achieving Net Zero."
UltraTech has made a strategic entry into the wires and cables segment with an investment of ₹18 billion, representing only 2% of its current capital employed. According to Choice Institutional Equities research report dated September 2, 2026, the company is targeting a 6-7% share of the domestic wires and cables market by FY30. At full capacity utilisation, estimated around FY30-31, the business has the potential to generate annual revenue of ₹90 billion with an asset turnover of around 5x. Assuming EBITDA margin of 10-12% in line with established industry players, the business could deliver an asset-level ROCE of over 20% at peak utilisation. The business is anchored by a new manufacturing facility at Jhagadia in Bharuch district, Gujarat, with the company expecting the strategic location to facilitate efficient distribution and logistics operations.
Despite the positive environmental announcement and wires and cables expansion, UltraTech Cement shares are currently trading 1.04% lower at ₹11,275 on Thursday following the latest developments. As reported by CNBC TV18, the stock is down 6% so far in 2026. However, Choice Institutional Equities has issued a buy rating with a target price of ₹15,210, valuing the company using an EV/CE-based methodology with a 3.8x FY28E multiple. The brokerage notes that UTCEM remains their preferred large-cap cement play, supported by its superior long-term earnings visibility and strong execution capabilities. The company's Managing Director KC Jhanwar emphasized that the expansion of electric mobility in logistics is aimed at decarbonising the company's value chain and supporting its Net Zero commitment. The wires and cables business, named Ultravolt, aims to become one of the top two players within five years with an ambitious rollout across more than 500 districts and 6,000 pin codes.
