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UltraTech plans big new plant in Central India

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World Cement,

UltraTech Cement is to continue investment in capacity, following its acquisition of the Jaypee Group’s cement business, the company’s chairman told its annual general meeting.

According to local media reports, Kumar Mangalam Birla, UltraTech’s Chairman, said it would invest INR26 billion (US$404.1 million) to build a new 3.5 million tpy integrated cement plant in Madhya Pradesh. The plant is expected to be in commercial production by 1Q20 and will further expand the company’s presence in Central India.

Following the acquisition of Jaypee’s cement assets, UltraTech accounts for 30% of cement capacity in Central India, making it the largest regional producer. Only in West India does the company have a higher share of the market at 37%.

In addition, the company is planning INR2.2 billion (US$342 million) in CAPEX for the current financial year, focused on stalled projects, regulatory requirements, plant infrastructure, and routine maintenance.

Improving the performance of the Jaypee assets will also be a priority for the company, said Birla, who expects the turnaround at those facilities to take 3 – 4 years.

“The assets with be strengthened by process and technologies upgradations, leading to enhanced capacity utilisation,” said Birla. “Creating synergies in manufacturing, distribution, and logistics offers many advantages. Furthermore, economics of scale and reduced lead-time will be achieved.”

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