UltraTech Cement Ltd approves capex of Rs. 965 crores

The Board of directors of UltraTech Cement Ltd at its meeting held today, approved capex of Rs. 965 crores towards modernisation and expansion of capacity at Birla White from the current 6.5 LTPA to 12.53 LTPA, in a phased manner. The incremental capacity will be operational in a phased manner. The capacity expansion will help Birla White strengthen its presence in the growing white cement market, reducing its dependence on high-cost imports.

UltraTech commenced operations from its bulk terminal at Kalamboli, Navi Mumbai. This is the 7th bulk terminal of the Company. The earlier 6 are located at Cochin in Kerala; Mangalore and Doddaballapur in Karnataka; Uran and Pune in Maharashtra and Shankarpalli in Telangana. With a capacity to handle ~1.2 mtpa cement and considering the large infrastructure development projects in and around Mumbai, the bulk terminal will strengthen the Company to further increase its sales of bulk cement. Cement will be brought in bulk rakes to this terminal from its various manufacturing units. This will effectively help in reducing freight cost, with increase in the usage of rail transportation. This is one more step of the Company in reducing carbon emissions and driving sustainable growth.

The Company commissioned Line II of the Bara Grinding Unit in Uttar Pradesh, having cement capacity of 2 mtpa. Line I was earlier commissioned in January 2020 and is already operating at a capacity utilisation of more than 80%. This additional capacity will help UltraTech to service the fastgrowing cement demand in the Central region of India.

With this expansion, during the financial year 2021-22, the Company has commissioned 3.2 mtpa new cement capacity, as planned, taking its total cement manufacturing capacity in India to 114.55 mtpa.

Shares of UltraTech Cement Limited was last trading in BSE at Rs. 7655.25 as compared to the previous close of Rs. 7609.85. The total number of shares traded during the day was 7180 in over 1943 trades.

The stock hit an intraday high of Rs. 7699.95 and intraday low of 7569.05. The net turnover during the day was Rs. 54914556.00.

Source : Equity Bulls

Keywords

UltraTechCement INE481G01011 ULTRACEMCO Modernisation CapacityExpansion BirlaWhite