UltraTech Cement is set to bolster its footprint in Maharashtra with a substantial investment exceeding Rs 800 crore. This strategic move involves both acquisition and expansion initiatives, aimed at fortifying its market presence in the region.
The cornerstone of this expansion drive lies in the acquisition of a 1.1 MT grinding unit located in Parli, Maharashtra, from The India Cements, marking a noteworthy transaction valued at Rs 315 crore. Concurrently, UltraTech Cement’s Board has greenlit plans for augmenting production capacity at this newly acquired facility by an impressive 1.2 MT.
In tandem with this acquisition, UltraTech is also gearing up for a significant capacity boost at its existing unit in Dhule. A substantial investment of Rs 504.4 crore has been earmarked for expanding capacity by 1.8 MT, effectively doubling the unit’s total capacity to 3.6 MT.
What’s noteworthy about this expansion drive is UltraTech’s commitment to financing it entirely through internal accruals, underlining the company’s financial prudence and robust position in the market.
These strategic investments align with UltraTech’s broader vision of scaling up its production capacity to meet the escalating demands of the market. With a current capacity of 147.3 MT of grey cement production in India, of which nearly 23 MT are in Maharashtra alone, the company is poised for substantial growth.
The timeline for these capacity expansions in Maharashtra is ambitious, aiming for completion by the fiscal year 2025-26. This concerted effort underscores UltraTech’s steadfast commitment to meeting the evolving needs of its customers while positioning itself as a formidable player in the cement industry.