MUMBAI: Ultratech Cement , India’s largest cement maker, has kick-started the next round of its capacity expansion which is likely to cost `5,000 crore, immediately after execution of its earlier plan of adding nearly 20 million tonne over the past four years.
The Aditya Birla Group company has placed orders for two 3.3-million tonne kilns on KHD Humboldt Wedag of Germany as part of its plan to add 9.4-million tonne capacity by 2012-13, said a company official who did not wish to be named. The Aditya Birla group spokesperson declined to comment as the company was in the silent period ahead of the September quarter earnings announcement.
These orders are for expansion at its Rawan plant in Chhattisgarh and Rajashree unit in Karnataka, Alchemy Share & Stock Brokers said in a note to its clients.
The 52-million tonne company has already stated its plan to add 25 million tonne capacity over the next five years to maintain its market share. The Birla company has a 19% share of the `1,00,000 crore market, world’s second largest market after China.
UltraTech has emerged as the single largest cement company in India with an annual cement capacity of 48.8 million tonne, thanks to the merger of the cement division of Grasim Industries with itself. It also has captive power of 504 MW. It recently bought the 3-million tonne ETA Star in Dubai.
UltraTech’s closest rival Holcim Group’s ACC and Ambuja Cement with 30.6 million tonne and over 25 million tonne capacity, respectively, are yet to finalise and announce any further expansion plan. ACC has expanded its manufacturing capacity by nearly 10 million tonne in over 3 years, while Ambuja will be a 27-million tonne company by December-end against 18 million tonne in 2007.
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