UltraTech Cement, India's largest cement producer, announces plans to invest more than ₹800 crore in Maharashtra to enhance its market presence. The investment includes the acquisition of a grinding unit in Parli and capacity expansions at existing facilities in Parli and Dhule.
The key highlights of UltraTech Cement's investment plan are as follows:
1. Acquisition of Grinding Unit: UltraTech Cement will acquire a 1.1 million tonne grinding unit located in Parli, Maharashtra, from The India Cements for ₹315 crore. This strategic acquisition is poised to bolster UltraTech's presence in Maharashtra's rapidly expanding markets.
2. Capacity Expansion: In addition to the acquisition, UltraTech Cement's board has approved the expansion of production capacity at the Parli facility by 1.2 million tonnes. Furthermore, the company plans to add 1.8 million tonnes of capacity at its unit in Dhule, Maharashtra. These capacity expansions demonstrate UltraTech's commitment to meeting the escalating demand for cement in the region.
3. Financial Implications: The investment of ₹800 crore, comprising ₹504.4 crore for capacity expansion and ₹315 crore for the Parli unit acquisition, will be funded entirely through internal accruals. This prudent financial approach underscores UltraTech's confidence in its growth prospects and financial strength.
4. Production Capacity: With a total capacity to produce 147.3 million tonnes of grey cement in India, UltraTech Cement aims to further strengthen its position in Maharashtra, where nearly 23 million tonnes of its capacity are located. The company's expansion initiatives align with its broader objective of increasing production capacity to 200 million tonnes, as articulated by Chairman Kumar Mangalam Birla.
UltraTech Cement anticipates completing the capacity expansions in Maharashtra by 2025-26, contributing to the state's infrastructure development and economic growth.
UltraTech Cement's investment of over ₹800 crore underscores its commitment to Maharashtra's construction and infrastructure sectors. By acquiring a grinding unit and expanding capacity at existing facilities, the company seeks to capitalize on the state's robust demand for cement and support its development trajectory. The strategic investments are poised to enhance UltraTech's market presence and contribute to its long-term growth and sustainability.
