India: UltraTech outlines upcoming greenfield expansion

Following its planned takeover of two cement plants owned by the Jaypee group, UltraTech has outlined its next phase of greenfield expansion.

India’s largest cement producer is planning to set up two  greenfield grinding units in Bihar and West Bengal, according to managing director OP Puranmalka. In addition, the company plans to build a bulk terminal in Maharashtra to enhance transport and logistics, and increase capacity at its existing plant in Rajasthan.

While the capacity expansion will strengthen UltraTech's top spot in the industry, the bulk terminal will help it to cut transport and logistics costs.

The company has an installed capacity of 62Mta  of grey cement. It has 12 integrated plants, one clinker plant, 16 grinding units and six bulk terminals.

With the approval from the board last month for the acquisitions from Jaypee, UltraTech's domestic cement capacity will increase to nearly 67Mta. The capacity will stand raised to 71Mta by 2016 once projects under implementation are completed.