NEW DELHI: The Board of directors of Ultratech Cement on Saturday approved the purchase of a grinding unit at Parli, Maharshtra from India Cement for a sum of Rs 315 crore.
The Parli unit of India Cement has an installed capacity of 1.1 mtpa in addition to a captive railway siding.
Ultratech has entered into an asset purchase agreement with India Cement for the aforesaid transaction. The Aditya Birla Group company in a statement said that the purchase will help the Company to strengthen its presence in the rapidly growing Maharashtra markets.
The acquisition is part of Ultratech’s brownfield capacity expansion plan, whereby it targets to add 3 mtpa additional capacity by the financial year 2025-26. The proposed capacity addition is planned at Parli, Maharashtra (1.2 million tonne per annum) and 1.8 million tonne per annum at Dhule, Maharashtra. The company proposes to invest Rs 504 crore to achieve the aforesaid capital addition.
The investment planned will be met through internal accruals. Ultratech is the country’s largest cement manufacturer with 147.3 million tonne per annum capacity. The company plans to take its grey cement capacity to 178 mtpa by financial year 2026-27.
In the December quarter of the financial year 2023-24, Ultratech Cement entered Jharkhand with acquisition of 0.54 million tonne per annum (mtpa) grinding capacity from Burnpur Cement Limited. The company also plans to add 14.7 million tonne per annum Greenfield capacity in the financial year 2024-25.
Adani group, which acquired Ambuja Cement, ACC and Sanghi Industries over the past two years, is now the second-largest cement manufacturer in the country with 78.9 million tonne per annum capacity.