UltraTech Cement poised to lift capacity to 71Mta

UltraTech Cement is set to take its capacity to 71.2Mta by 31 March 2016 on the back of ongoing projects as well as recent acquisitions, chairman Kumar Mangalam Birla said on Friday.

"Despite the cement industry being snowed under the slowdown in the rural economy, lack of investment from both private and public sector coupled with the overall sluggish demand, UltraTech had put in a commendable performance...With the on-going projects underway, the capacity in India will grow to 71.2Mta by the end of FY 2015-16," Birla said addressing shareholders at the company's AGM on Friday.
He said UltraTech's directors have approved the acquisition of the cement units of Jaiprakash Associates Limited, situated at Bela and Sidhi in Madhya Pradesh.

Shareholders of the company have approved the scheme of arrangement between the company and Jaiprakash Associates Limited (JAL) and their shareholders and creditors for acquisition of the cement units, having a capacity of 4.9Mta together with a thermal power generation capacity of 180MW.

The Competition Commission of India has already approved the transaction. The transaction is now subject to approval from the high courts and getting all regulatory approvals.

"With this an additional 4.9Mta capacity and thermal power generation capacity of 180MW will be added. This acquisition will raise UltraTech's cement capacity in India from 60.2Mta to 65.1Mta," he said.

Acquisition of the Gujarat units of Jaypee Cement Corporation Limited has been completed and the acquired facilities comprise an integrated unit at Sewagram and a grinding unit at Wanakbori, with a combined capacity of 4.8Mta.

Meanwhile, UltraTech has recently commissioned a bulk terminal with a capacity of 2Mt located at Pune in state of Maharashtra.