AV Birla group to raise cement production capacity

AV Birla group to raise cement production capacity
Published: 23 October 2007

The Aditya Birla Group today said it will increase its cement production capacity by almost 50 per cent to 46Mt in the next one year as it seeks to increase sales and gain higher market share.  
 
The diversified corporate house also announced change of name of its ’Birla Plus’ brand to ’UltraTech’ Cement, making it the largest cement brand in the country with a capacity of more than 25Mt.  
 
"UltraTech will be the face of our cement business. This will be the biggest brand in the Indian cement business," O P Puranmalka, Group Executive President (marketing and strategy) of  Aditya Birla Group told reporters here.  
 
Puranmalka said the group has a total cement capacity of 31Mt and over the next 12 months it would add another 15Mt.  
 
The group has a market share of 19.5 per cent and after the expansion it is eyeing a share of 22-23 per cent.  
 
He said ’UltraTech’ would be the Group’s only national brand. Birla Plus is a major brand of  Grasim Industries Ltd having presence in the northern region. Currently, 55 per cent of capacity is UltraTech while the rest comprises Birla Plus and other regional brands.  
 
After the consolidation, 90 per cent of the total cement capacity would be under UltraTech brand. The remaining would be under regional brands such as Vikram Cement in North Zone, Birla Super in Bangalore, Pune and Mysore and Rajashree Cement in the West and South Zone.  
 
The brand equity would be much better, Puranmalka said, adding sales are also expected to improve. UltraTech has a leadership position in all markets and the brand would benefit from national marketing, he said. Its distribution network will be pan-India with over 14,000 dealers and 60,000 retailers.