 "Ultratech Cement aims 63.45 MT capacity by 2015")
Ultratech Cement, an Aditya Birla Group enterprise, has set an ambitious target of increasing the production capacity to 63.45 million tonnes per annum (mtpa) by 2015, from 53.9 mtpa now.
"We have blueprinted an audacious growth plan. By 2015, our goal is to scale our cement capacity to 64.45 mtpa from the current 53.90 mtpa," company Chairman Kumar Mangalam Birla said in a letter to shareholders ahead of Ultratech's Annual General Meeting on July 29.
Ultratech in FY'13 commissioned projects including a 3.3 mtpa clinkerisation facility at Rawan in Chhattisgarh; a 1.55 mtpa grinding unit at Hotgi, Maharashtra. It has also enhanced the grinding capacity of the Gujarat plant by 0.60 mtpa.
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"The commissioning of these projects has raised company's cement capacity by 2.15 mtpa, taking the total capacity to 53.90 mtpa," Birla said.
"Several other projects are underway, such as 3.3 mtpa clinkerisation plant in Karnataka. At Aditya Cement Works in Rajasthan a 2.9 mtpa capacity expansion is on the anvil...We expect to flag off new expansion by March, 2015. This expansion entails a capital outlay of Rs 2,000 crore," he added.
Ultratech had a total capex outlay for Rs 11,400 crore of which Rs 4,300 crores has been spent. Capex was earmarked for capacity expansion, captive power plant, waste heat recovery system, ready-mix concrete plants, strengthening of logistic infrastructure and modernisation.
The company said Rs 2,000 crore of the capex was made for the third line expansion at Aditya Cement in Rajasthan. In addition, another Rs 2,000 crore was earmarked for on-going projects in Karnataka and Chhattisgarh and attached grinding units.
"We will be able to consolidate our leadership position in the cement sector, backed by our robust capex plans. The sector's growth prospects are indeed encouraging in the long term. Housing, infrastructure and allied spending are the need of the hour," Birla said.