On Tuesday, Ultratech Cement announced that they have plans to spend a capital expenditure of Rs 11,000 crore over the next three years as they expand their business and build new plants in India. An Ultratech press release stated that these expansions included clinkerisation plants in Chattisgarh and Karnataka, along with other grinding units, packaging terminals, and ready-to-mix plants across the nation.
In its plans, the company says that its first projects will be in operation from April to March of 2013 to 2014, and that their capacity will go up by 9.2 million tons per year. Right now, Ultratech currently produces 52 million tons a year and has 11 integrated plants along with 15 different grinding units and 5 terminals.
The company is building these expansions in expectation of an industry growth that they estimate will be around 8.5% due to initiatives by the government to develop rural areas in infrastructure, development and housing.
From 2010 to 2011, the demand for cement went up by 5.3%, and according to Ultratech, this was the lowest increase in demand in a 10 year period. This decrease was mostly due to a slowing real estate market, less spending on infrastructure, as well as an extended monsoon season.
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