With the new grinding unit, UltraTech’s total cement capacity in the eastern region stands at 9.8mt per annum, operating at 100% utilization.
UltraTech Cement Ltd on Wednesday announced commissioning of a grinding unit in West Bengal, increasing the company’s total cement capacity to 64.7 million tonnes (mt).
“The company has commissioned a cement grinding unit with a capacity of 1.6 million tonnes at Dankuni in West Bengal,” the company said in its statement to BSE on Wednesday.
In the last six months, the company has announced three new capacity additions, including a bulk terminal in Maharashtra, another 1.6mt grinding unit in Haryana and a clinker capacity of 2mt in Rajasthan.
With the new grinding unit, UltraTech’s total cement capacity in the eastern region stands at 9.8mt per annum, operating at 100% utilization, said the company statement.
Prices in the eastern region have been on the higher side, but dealers and analysts expect them to soften due to weak demand.
“The eastern market saw limited price movement and soft demand could herald some correction in future,” wrote analysts Mihir Jhaveri and Siddharth Vora in a Religare Institutional Research report dated 30 September.
UltraTech Cement, is also in the process to acquire Jaiprakash Associates’ two cement assets in Madhya Pradesh for a deal value of Rs.5,400 crore. The cement producer looks to raise its total cement capacity to 71mt, after it completes planned expansions and acquisitions.
Shares of UltraTech Cement dropped 0.67% to Rs.2,694 at 1.22pm on Wednesday on BSE, while the benchmark Sensex gained 0.98% to 26,030.08 points.
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