India: UltraTech Cement approves acquisition of 1.1 mnt/yr grinding unit in Maharashtra

UltraTech Cement, a leading player in India's cement industry, recently approved the acquisition of a grinding unit boasting a 1.1 million tonnes per annum (mnt/annum) installed capacity, along with a captive railway siding, in Parli, Maharashtra. This strategic acquisition from The India Cements Limited, structured through an Asset Purchase Agreement, fortifies UltraTech's position in the swiftly evolving Maharashtra markets.

With this purchase, UltraTech is poised to augment its operations in Maharashtra further. The company has also given the green signal for brownfield capacity expansions, reflecting its proactive stance towards meeting escalating demand in the region. These expansions entail a 1.2 mnt/year addition in Parli, Maharashtra, following the acquisition, and a separate 1.8 mnt/year expansion in Dhule, Maharashtra.

Highlighting its existing capacity, UltraTech currently commands a domestic grey cement capacity of 147.3 mnt/year, inclusive of its operations in Parli, Maharashtra. As of December 2023, the company operates at an 80% capacity utilisation rate.

The proposed capacity enhancements are slated for completion by FY26 and will be financed through internal accruals. This strategic investment aligns with UltraTech's forward-looking strategy to cater to future growth prospects in the cement sector.

UltraTech's strategic moves underscore its commitment to expanding its footprint in Maharashtra's thriving cement market. By leveraging internal resources for expansion, the company is well-positioned to capitalise on the promising opportunities in the region, ensuring sustained growth and market leadership in the years ahead.