UltraTech buys India Cement’s grinding unit, ups production capacity by 3 million tonnes
22 Apr 2024
Aditya Birla group company UltraTech Cement is acquiring a 1.1 million tonne grinding unit from India Cements for Rs315 crore. The acquisition of the grinding unit will add 3 million tonnes of cement manufacturing capacity to UltraTech in Maharashtra - including 1.2 million tonnes at Parli and 1.8 million tonnes at Dhule.
The grinding unit, located in Pali, Maharashtra, is well connected with a captive railway siding as well, the company stated in a stock exchange filing.
The board of directors of the company has approved the acquisition, which was formalised through an Asset Purchase Agreement between UltraTech Cement and India Cements Limited.
UltraTech also announced total investment of Rs504 crore to achieve the capacity addition, which, the company said, will help strengthen its market presence in Maharashtra.
UltraTech, currently the largest cement manufacturer in India, with an annual capacity of 147.3 million tonnes, plans to take its grey cement capacity to 178 mtpa the 2026-27 financial year.
The company plans to finance the acquisition from internal accruals.
UltraTech had, in the December 2023-24 quarter of the previous financial year, had acquired a 0.54 mtpa grinding unit of Burnpur Cement in Jharkhand.
Besides the brownfield expansion through acquisitions, UltraTech Cements proposes to add 14.7 mtpa of greenfield cement capacity in the current financial year.
UltraTech also, in a separate stock exchange filing, announced the receipt of approval from the National Company Law Tribunal (NCLT), Kolkata, for the amalgamation of UltraTech Nathdwara Cement and its wholly-owned subsidiaries (Swiss Merchandise Infrastructure and Merit Plaza) with the company.
