CementIndustry NewsLatest NewsSpotlight

UltraTech Cement Plans over Rs. 800 Cr. Expansion in Maharashtra

UltraTech Cement logo

UltraTech Cement Ltd., part of the Aditya Birla Group, will be investing about Rs. 819.40 crore towards cement capacity augmentation in Maharashtra.

As per two separate stock filings by the company on 20th April 2024, UltraTech’s Board of Directors has approved acquisition of a grinding unit for Rs. 315 crore and two brownfield expansions worth a total of Rs. 504.40 crore.

Parli Grinding Unit to be Acquired for 315 Cr., Additional 166 Cr. Investment to Follow

UltraTech’s board has given approval for the acquisition of a 1.1 Million Metric Tonne Per Annum (MMTPA) cement grinder situated in Parli from The India Cements Ltd. This grinding unit also has a captive railway siding.

The two companies have entered into an Asset Purchase Agreement on 20th April 2024. In its stock filing from the same date, India Cements added that out of the Rs. 315 crore sum, Ultratech will pay Rs. 307 crore ‘shortly’, while the remaining Rs. 8 crore will be paid within 9 months from the date of execution of the sale agreement, that is, by 20th January 2025.

UltraTech to Add 1.2 MMTPA to Parli Unit by FY-26 with 166 Cr. Investment

Post-acquisition of The India Cements’ Parli grinding unit, UltraTech Cement will invest Rs. 166 crore in this unit to augment its capacity by 1.2 MMTPA by FY-26. This capacity addition will be completely funded by the company’s internal accruals.

UltraTech Plans Rs. 338 Cr. Brownfield Expansion at Dhule

Cement

UltraTech Cement will be investing a asum of Rs. 338 crore, as a part of its brownfield expansion at its grinding unit in Dhule, Maharashtra. This CapEx, which will be entirely financed through the company’s internal funds, targets addition of 1.8 MMTPA at the unit by FY-26. Following this expansion, this unit will have a capacity of 3.6 MMTPA.

UltraTech’s Move to Expand its Presence in Maharashtra, Serve its Production Goals

UltraTech Cement’s acquisition of Parli grinding unit is poised to “…help the company to strengthen its presence in the rapidly growing Maharashtra markets”. Moreover, the company seeks “to cater future growth” through its brownfield expansion operations in Maharashtra.

It must be noted that UltraTech Cement is in the process of expanding its overall capacity, and has added 18.7 MMTPA cement production capacity in the past 1 year. Further, as for the company’s production targets, the company eyes 187 MMTPA production capacity by FY-26, and 200 MMTPA in the near future as shared by Mr. Kumar Mangalam Birla, Chairman of Aditya Birla Group, during the company’s 23rd Annual General Meeting in August 2023.

In this direction, UltraTech commissioned two new plants in April 2024 to take its manufacturing capacity past the 150 MMTPA mark.

About UltraTech Cement Ltd.: UltraTech Cement is a major Indian cement manufacturer, and its product range comprises grey cement, white cement, and Ready Mixed Concrete (RMC). As per UltraTech, it is the third largest cement producer in the world (excluding China). The company reported a consolidated revenue of Rs. 63,239.98 crore for the 2022-23 financial year.