Ultratech Cement Ltd. is set to expand production capacity in Maharashtra after acquiring a grinding unit from a southern rival.
The board of India's largest cement maker has approved an investment of Rs 166.4 crore to increase production capacity of its Parli unit by 1.2 million tonnes per annum, according to an exchange filing on Saturday. That was facilitated by the acquisition of a 1.1 mtpa grinding unit of India Cements Ltd. in Parli for a consideration of Rs 315 crore.
"The company has entered into an asset purchase agreement with the seller (India Cements) for the aforesaid transaction," Ultratech Cement said in a second exchange filing on Saturday. "This purchase will help the firm to strengthen its presence in the rapidly growing Maharashtra market."
Separately, the Mumbai-based cement maker of the Aditya Birla Group will step up the production capacity of its Dhule unit by 1.8 mtpa at a cost of Rs 338 crore.
The total investment of Rs 504.4 crore will be met via internal accruals, the company stated in the exchange filing.
Ultratech Cement, at present, has a totalled installed capacity of 147.3 mtpa at its Parli and Dhule units. The plants were operating at 80% utilisation levels in the nine months through Dec. 31, 2023.
The proposed brownfield expansion, to be completed by Fiscal 2026, will increase the total installed capacity to 150.3 mtpa.
On Friday, Ultratech Cement shares fell 0.21% to Rs 9,367.40 apiece on the BSE even as the benchmark Sensex ended the day 0.83% higher at
73,088.33 points.
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