UltraTech to increase production capacity 10%
WAREHOUSING & LOGISTICS

UltraTech to increase production capacity 10%

UltraTech Cement plans to raise their production capacity by 12.8 million metric tonne (mmt) to 136.25 mmt. The Board has approved an investment of Rs 5,477 crore to enable this expansion, which would be a mix of greenfield and brownfield projects.

The investment amount is far beyond the planned Rs 1,500 crore capex for the FY21. The company justified this by referring to the financial recuperation in the domestic market and the increase in the demand of the cement in general.

The developing markets of the eastern, central and northern regions of the country will be the prime locations for the creation of this additional capacity, the Aditya Birla Group stated in an official release. Amongst all the mentioned regions, the eastern region has generated the highest demand, thanks to increased labour availability as the migrant workers got back from their hometown due to lockdown. A Motilal Oswal report stated that this demand is also upheld by government spending in that region.

Kumar Mangalam Birla, the chairman at the Aditya Birla Group, stated that given the current financial scenery, the capital cost is in line with the government’s Atmanirbhar Bharat scheme, which aims to financially boost the core infrastructure sector and enable the cycle of private investments.

Greenfield projects will make up 28% of the total capacity expansion, while the balance will be made-up of brownfield projects. The new capacities will be phased out, starting from the fourth quarter of FY23.

The plan includes the organisation’s 6.7 mmt capacity expansion that is currently under progress in Odisha, West Bengal, Uttar Pradesh and Bihar. The process has picked up pace since the relaxation of lockdowns. It also includes the approval for the plant at Pali in Rajasthan.

The deleveraging programme that is currently underway to free UltraTech Cement of its long-term liabilities, by the time the expansion is completed, will not be affected by this capacity addition master plan. This plan is set to reinforce their position as the third-largest cement company in the world, outside of China.

Source: Business Standard

UltraTech Cement plans to raise their production capacity by 12.8 million metric tonne (mmt) to 136.25 mmt. The Board has approved an investment of Rs 5,477 crore to enable this expansion, which would be a mix of greenfield and brownfield projects. The investment amount is far beyond the planned Rs 1,500 crore capex for the FY21. The company justified this by referring to the financial recuperation in the domestic market and the increase in the demand of the cement in general. The developing markets of the eastern, central and northern regions of the country will be the prime locations for the creation of this additional capacity, the Aditya Birla Group stated in an official release. Amongst all the mentioned regions, the eastern region has generated the highest demand, thanks to increased labour availability as the migrant workers got back from their hometown due to lockdown. A Motilal Oswal report stated that this demand is also upheld by government spending in that region. Kumar Mangalam Birla, the chairman at the Aditya Birla Group, stated that given the current financial scenery, the capital cost is in line with the government’s Atmanirbhar Bharat scheme, which aims to financially boost the core infrastructure sector and enable the cycle of private investments. Greenfield projects will make up 28% of the total capacity expansion, while the balance will be made-up of brownfield projects. The new capacities will be phased out, starting from the fourth quarter of FY23. The plan includes the organisation’s 6.7 mmt capacity expansion that is currently under progress in Odisha, West Bengal, Uttar Pradesh and Bihar. The process has picked up pace since the relaxation of lockdowns. It also includes the approval for the plant at Pali in Rajasthan. The deleveraging programme that is currently underway to free UltraTech Cement of its long-term liabilities, by the time the expansion is completed, will not be affected by this capacity addition master plan. This plan is set to reinforce their position as the third-largest cement company in the world, outside of China. Source: Business Standard

Next Story
Products

Utility-Scale Inverter

Polycab’s UT 1500V Series (350kW) three-phase string inverter features 15/12 MPPTs, supports bifacial 182mm/210mm modules, includes optional Anti-PID and PID-recovery, operates in -35°C to +60°C, and ensures high efficiency, safety, and cost-effective utility-scale PV performance.Contact: PolycabWebsite: https://polycab.com/ ..

Next Story
Resources

Shyam Metalics CMD Brij Bhushan Agarwal Elected ICC President

Brij Bhushan Agarwal, Chairman and Managing Director of Shyam Metalics, has been elected President of the Indian Chamber of Commerce (ICC), after serving as Senior Vice President. Agarwal brings decades of experience in the metals and mining sector and has guided Shyam Metalics into a leading integrated metal producer with strong steel, ferro alloys, and aluminum operations. He has also been active in social initiatives spanning education, healthcare, rural development, and skill enhancement. As ICC President, he aims to strengthen the Chamber’s role in supporting sustainable growt..

Next Story
Products

Smart Hot Water

Kenstar unveils its new water heater range with SwirlHeat, German Blue Sapphire Technology, and High-Density PUF insulation, offering faster heating, longer heat retention, up to 20 per cent more hot water, 5-star BEE rating, 7-year warranty, and robust 7-Level Safety Shield for safe, efficient, and stylish baths. Contact: Kenstar Website: https://kenstar.in/  ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?