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UltraTech to pass 100 million tpy capacity mark

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World Cement,

UltraTech Cement is to acquire the cement business of Cement Textiles, taking the Indian cement producer’s global capacity to 109.9 million tpy. The transaction will see UltraTech issue 14 million new equity shares to shareholders of Century Textiles/

Century Textile’s cement business comprises three integrated cement plants in the states of Madhya Pradesh, Chhattisgarh, and Maharastra, as well as a 2 million tpy grinding plant in West Bengal. Total cement production capacity over the four units is 13.4 million tpy.

“The transaction provides UltraTech the opportunity for further strengthening its presence in the high-fragmented, competitive and fast-growing east and central markets and extending its footprint in the western and southern markets of the country,” the company said in a statement.

The transaction is subject to the approval of shareholders and creditors, stock exchanges, and regulators. It is expected to be completed within the next 6 – 9 months.


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UltraTech – already India’s largest cement producer – has been expanding rapidly. Last year, it acquired the cement business of Jaiprakash Associates, a deal that added 21.2 million t to its installed capacity. It is also in a battle with Dalmia Bharat Group two acquire indebted Binani Cement.

Following the Century Textiles deal, UltraTech will be the third largest cement producer in terms of installed capacity outside of China, behind only European multinationals, LafargeHolcim and HeidelbergCement. The company currently operates in India, the UAS, Bahrain, Bangladesh, and Sri Lanka, as well as being India’s largest exporter of cement.

“The [Century Textiles] operations will be bolstered by economics of scale arising out of synergies in procurement and logistics costs, creation of efficiencies by reducing time to market, [and] enhancing competitiveness, as well as customer service,” UltraTech concluded. “Other advantages stem from ready-to-use assets with a strong distribution network [and the] availability of land, railway, and other infrastructure.”

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India cement news Cement news 2018