UltraTech plans capacity addition, Q1 disappointing

July 30, 2010: India's largest cement producer, UltraTech Cement, plans to add 9 million tons (mt) of new capacity over the next three years to meet the requirements of a rapidly growing domestic economy. For this, the company is looking to spend $1.8 billion, as per a recent Reuters report.

Part of the diversified Aditya Birla group, UltraTech plans to spend Rs 56 billion to set up clinkerisation plants in central and southern India, according to a company statement issued on July 29.

UltraTech along with the Indian units of Swiss cement major Holcim each control a fifth of the Indian market, where other global players such as LaFarge, Vicat and Mexico's Cemex are looking to expand their presence.

The company is already incurring an expenditure of Rs 26 billion towards grinding capacity in western India and on waste heat recovery systems and packaging terminals across the country.

India is the world's second largest cement market with a capacity of 270 mt. The market has been growing at 10-12% over the past year, fuelled by rapid infrastructural growth and property projects.

Source: Steel Insights Daily