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UltraTech Cement plans capacity expansions as net sales increase

World Cement,

India’s UltraTech Cement, part of the Aditya Birla Group, has released its results for the financial year ending on 31 March 2013. The cement manufacturer saw sales of clinker and grey cement stay level at 40.7 million t. However, white cement sales increased from 5.6 lakh t in FY12 to 5.7 lakh t in FY13. Financial results for the period were positive, with net sales rising from Rs.18 158 crores to Rs.20 018 crores. Profit before interest, depreciation and tax came in at Rs.4980 crores and profit after tax rose from Rs.2446 crores to Rs.2655 crores.

In the fourth quarter of FY13, net sales reached Rs.5389 crores, up from Rs.5334 crores in the same quarter the previous year. Profit after tax declined slightly from Rs.867 crores to Rs.726 crores. Sales volumes of clinker and grey cement remained flat in 4Q at 11.13 million t, and sales of white cement dropped from 1.63 lakh t to 1.56 lakh t.

UltraTech Cement has commissioned the following projects, thereby increasing its cement capacity from 48.75 million t to 50.9 million t:

  • 3.3 million t clinkerisation plant in Rawan, Chhattisgarh.
  • 1.55 million t grinding unit in Hotgi, Maharashtra.
  • Increased cement grinding capacity by 0.6 million t at the Gujarat plant.
  • Bulk terminal plant in Cochin, Kerala.
  • Wall care putty plant in Katni, Madhya Pradesh.

The firm aims to expand its capacity further in order to reach 61.45 million t. In order to do so, several projects are being planned, including a clinkerisation plant in Karnataka. This 3.3 million t capacity plant is due to go onstream in 1QFY14. The company’s Board has also approved a capacity expansion project at the Aditya cement works in Rajasthan. Two grinding units would be constructed, increasing capacity by 2.9 million t. Commissioning at the site is expected to occur in March 2015.

Adapted from press release by Louise Fordham.

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