UltraTech Cement plans next phase of greenfield expansion.

Kumar Mangalam Birla-controlled UltraTech Cement Ltd. has charted out its next phase of greenfield expansion after a period of aggressive acquisitions over the last two years.

Following its takeover of two cement plants owned by the Jaypee group, UltraTech has plans to set up two greenfield grinding units in Bihar and West Bengal, according to O.P. Puranmalka, managing director of UltraTech. 'We will also build a bulk terminal in Maharashtra and increase capacity at our existing plant in Rajasthan,' he said.

While the capacity expansion will strengthen UltraTech's top spot in the industry, the bulk terminal will help it to cut transport and logistics costs.

The company has an installed capacity of 62 million tonnes per annum (mtpa) of grey cement. It has 12 integrated plants, one clinker plant, 16 grinding units and six bulk terminals.

With the Jaypee acquisition last month, its cement capacity in India will increase to nearly 67 mtpa. The capacity will stand raised to 71 mtpa by 2016 once projects under implementation are completed.

On 23 December, UltraTech said it will buy two cement plants and related power assets owned by Jaiprakash Associates Ltd. (JAL) in Madhya Pradesh for Rs. 5,400 crore. In September 2013, UltraTech had acquired Jaypee's Gujarat unit for Rs. 3,800 crore.


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