Ultratech plans to inject ₹800 Crore for increasing presence in Maha

22 Apr 2024 , 01:26 PM

UltraTech Cement plans to spend around ₹800 Crore in Maharashtra, including the acquisition of a factory and brownfield expansions.

The country’s largest cement company will purchase a 1.1 million tonne grinding plant in Parli, Maharashtra, from The India Cements for ₹315 Crore.

“This purchase will help the company bolster its position in the rapidly growing Maharashtra markets,” according to the company.

The board has also authorised increasing production at this plant by 1.2 million tonnes. Additionally, UltraTech will add 1.8 million tonnes of capacity to its Dhule operation, bringing the total capacity to 3.6 million tonnes.

The company plans to spend ₹504.4 Crore on capacity development and ₹315 Crore on the buyout of the Parli plant, all funded by internal accruals.

UltraTech has the ability to make 147.3 million tonnes of grey cement in India, roughly 23 million tonnes of which will be in Maharashtra.

The company’s capacity utilisation was approximately 80% between April and December, and it aims to complete these capacity additions in Maharashtra by 2025-26 (April-March), according to an exchange filing on Saturday. Last year, Chairman Kumar Mangalam Birla announced that the business intended to boost manufacturing capacity to 200 million tonnes.

UltraTech has acquired NCLT permission for the Scheme of Amalgamation of UltraTech Nathdwara Cement, the company’s wholly-owned subsidiary, and its wholly-owned subsidiaries Swiss Merchandise Infrastructure and Merit Plaza.

The merger went into effect on April 20.

According to UltraTech, the assets and liabilities of the three subsidiaries will be transferred to it, and the three businesses will be dissolved without winding up.

For feedback and suggestions, write to us at [e-mail]