UltraTech Cement, the largest cement manufacturer in India, has made a significant move towards expanding its operations by acquiring a grinding unit from India Cements in Maharashtra. The acquisition, valued at Rs 315 crore, was announced by UltraTech Cement on April 20.
Situated in Parli, Maharashtra, the grinding unit boasts a capacity of 1.1 million tonnes per annum (mtpa) and features a captive railway siding, enhancing logistical efficiency. The company’s regulatory filing confirmed the board of directors’ approval for the purchase, emphasizing its strategic importance in strengthening UltraTech Cement’s foothold in the rapidly growing Maharashtra markets.
This acquisition aligns with UltraTech Cement’s ambitious expansion plans, as earlier this month, the company disclosed its intention to invest a staggering Rs 32,400 crore over the next three years. This investment drive aims to bolster its cement manufacturing capacity, aiming to reach nearly 200 mtpa.
As part of this expansion strategy, UltraTech Cement recently commissioned two new greenfield capacities with a combined capacity of 5.4 mtpa in Chhattisgarh and Tamil Nadu, elevating its total capacity to 151.6 mtpa. Furthermore, the company ventured into renewable energy with the completion of a 100-megawatt (MW) solar project in Rajasthan, marking its foray into sourcing power for captive consumption from the inter-state transmission network.
In a separate filing, UltraTech Cement also announced the approval from the National Company Law Tribunal (NCLT), Kolkata, on April 3, 2024, for the proposed scheme of amalgamation of UltraTech Nathdwara Cement and its wholly-owned subsidiaries with the company. This consolidation is expected to streamline operations and further enhance UltraTech Cement’s market position.
Following these developments, UltraTech Cement’s shares settled marginally lower by 0.21 per cent at Rs 9,367.40 per share on the BSE on April 19, indicating the market’s response to the company’s recent activities in the cement industry.
This strategic acquisition not only consolidates UltraTech Cement’s presence in Maharashtra but also underscores its commitment to sustained growth and innovation within the cement sector. With its aggressive expansion plans and investments in both manufacturing capacity and renewable energy, UltraTech Cement continues to solidify its position as a leader in India’s cement industry, poised for further success in the years ahead.
