Ultratech Cement board OKs Rs 12,886 crore capex plan
Jun 02, 2022 05:21 PM | Source: capitalmarket.com
Ultratech Cement said that its board has approved capex of Rs 12,886 crore towards increasing capacity by 22.6 MTPA, with a mix of brown field and green field expansion.
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This would be achieved by setting-up integrated and grinding units as well as bulk terminals. The additional capacity will be created across the country. The capex would be funded via a mix of debt and internal accruals.
Kumar Mangalam Birla, chairman, Aditya Birla Group said, "This ambitious capacity expansion plan is a significant milestone in the ongoing transformational growth journey of Ultra Tech. 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.
This investment is backed by a strong conviction on India's growth potential as well as a deep and nuanced understanding of the market dynamics of the cement industry. 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."
Commercial production from these new capacities is expected to go on stream in a phased manner, by FY25. UltraTech's current expansion program is on track and estimated to be completed by the end of FY23.
Upon completion of the latest round of expansion, the company's capacity will grow to 159.25 MTPA, reinforcing its position as the third largest cement company in the world, outside of China.
UltraTech Cement is the cement flagship company of the Aditya Birla Group. UltraTech is the third largest Cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 119.95 MTPA.
On a consolidated basis, the cement major's normalised net profit declined 18.52% to Rs 1,478 on 9.31% increase in net sales to Rs 15,557 crore in Q4 March 2022 over Q4 March 2021.
The scrip rose 0.50% to end at Rs 6007.35 on the BSE today.