UltraTech Cement adds 1.6 mt grinding capacity in Haryana

Byszheng

Updated Wed, 23 Sep 2015 15:21:11 GMT

UltraTech Cement has commissioned a 1.6 million tonne grinding unit at Jhajjhar in Haryana, taking its cement production capacity to 63.1 million tonnes per annum (mtpa).

The clinker required for the grinding unit will be supplied by Aditya Cement in Rajasthan.

A new line of clinker production at Aditya Cement was commissioned in March.

With the additional grinding capacity, the company would be able to tap the northern region more effectively.

The northern region, one of the largest cement markets, accounts for 35 per cent of cement demand and is expected to grow at eight per cent per annum, said the company in a statement on Tuesday.

The new grinding unit is located less than 100 km from the major cement market of National Capital Region and ensures adequate supply to customers, it added.

Despite weak demand, UltraTech has been on an expansion mode through acquisition and greenfield expansion.

The company recently acquired 4.8 mtpa cement capacity along with affiliated grinding units at Sewagram in Gujarat from Jaypee Cement Corporation for enterprise value of ?3,800 crore.

The Board of the company also approved acquisition of 4.9 mtpa at Bela and Sidhi in Madhya Pradesh from Jaiprakash Associates.

The deal will help the company to scale up its presence in eastern and central parts of Uttar Pradesh and Madhya Pradesh.

UltraTech has marginal presence in these markets which are growing at about eight per cent.

The company targets to take its total production capacity to 71 mtpa by end of this fiscal and has sought shareholders approval to raise ?9,000 crore.

It has drawn a capex of ?3,798 crore for this fiscal and another ?3,053 crore for 2016-17.