Ultratech Cement, a unit of the diversified business conglomerate AV Birla Group, today said it may go for expansion to retain its market share in the domestic cement market. The company, currently, produces 17Mt of cement at its five plants and enjoys just above 10 per cent market share. It has embarked on a 4Mta brownfield expansion at its Tadipatri plant in Andhra Pradesh, which will be fully operational in 2008-09.
It is important for us to maintain our market share in the growth scenario, may be through any route, Ultratech Cements chief financial officer Mr KC Birla said here today.
Meanwhile, after a lull of almost ten years, the Indian cement industry is literally on an expansion spree. Almost all the players are in the process or executing expansion plans and by 2009, the Indian cement industry would add around 70Mt to its existing capacity of 160Mt.
Simple mathematics reveal that Ultratech cement needs to add further capacity to at least 2Mta to retain its market share. It could be a greenfield project, Mr Birla said.