MUMBAI: Ultra Tech Cement, the flagship company of Aditya Bill Group, will invest Rs 12,886 crore towards capacity expansion of 22. 6 million tonne per annum (MTA) over the next three years. This will not only reinforce its position as the third-largest cement company in the world, outside China, but also further bolster its leadership position in India.
The capex was approved by the board of Ultra Tech Cement on Thursday. The development comes barely a month after the Adana Group entered into an agreement with Hollis India’s Swiss parent to acquire the India assets (Abuja Cements & ACC) for an estimated $10. 5 billion, which is billionaire Gautam Adana’s largest M&A.
Ultra Tech’s existing capacity is around 120mtpa. The company had announced a Rs 5,700-crore investment in December 2020 to take this to about 136mtpa. Now, with the new announcement to add 22. 6mtpa, Ultra Tech Cement’s total capacity will go to around 159mtpa by FY25. The expansion by Bill will widen the gap between Ultra Tech Cement and Hollis, whose current combined cement capacity is around 70mtpa.
Aditya Bill Group chairman Kumar Manga lam Bill said, “The company has more than doubled its capacity over the last five years and is committed to meeting India’s future needs for housing, roads and other infrastructure. Given the size of the investment outlay, I am confident that this new capacity creation will have a multiplier effect, leading to jobs and growth across multiple regions in India. ”
The capacity expansion is being carried out through a mix of brownfield and greenfield projects, the company said in a statement. This would be achieved by setting up integrated and grinding units as well as bulk terminals.
- Ultra Tech’s existing capacity is around 120mtpa. Now, with the new announcement to add 22. 6mtpa, Ultra Tech Cement’s total capacity will go to around 159mtpa by FY25.
- Now, with the new announcement to add 22. 6mtpa, Ultra Tech Cement’s total capacity will go to around 159mtpa by FY25.
- The company had announced a Rs 5,700-crore investment in December 2020 to take this to about 136mtpa.
- The capex was approved by the board of Ultra Tech Cement on Thursday.
- The development comes barely a month after the Adana Group entered into an agreement with Hollis India’s Swiss parent to acquire the India assets (Abuja Cements & ACC) for an estimated $10. 5 billion, which is billionaire Gautam Adana’s largest M&A.
- Aditya Bill Group chairman Kumar Manga lam Bill said, “The company has more than doubled its capacity over the last five years and is committed to meeting India’s future needs for housing, roads and other infrastructure.
- Given the size of the investment outlay, I am confident that this new capacity creation will have a multiplier effect, leading to jobs and growth across multiple regions in India.
- The expansion by Bill will widen the gap between Ultra Tech Cement and Hollis, whose current combined cement capacity is around 70mtpa.
- Ultra Tech Cement, the flagship company of Aditya Bill Group, will invest Rs 12,886 crore towards capacity expansion of 22. 6 million tonne per annum (MTA) over the next three years.
- This will not only reinforce its position as the third-largest cement company in the world, outside China, but also further bolster its leadership position in India.
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