UltraTech Cement walks a long road with Jaiprakash Associates' assets

It plans to achieve a breakeven at the profit before tax level for these acquired assets in the April-June 2019 quarter

More than a year since the completion of its Rs 161.89-billion acquisition of Jaiprakash Associates’ cement — the largest–ever cement deal in India — UltraTech has won the first half of the turnaround battle through a rise in volumes. The second half would require the country’s largest cement maker to display price rationalisation.  

When the company took over about 21.2 million tonne capacity from Jaiprakash Associates in 2017, it was staring at a capacity utilisation of less than 15 per cent and a cost-structure that was not cash-positive. 

Back then, UltraTech had set a target to turn cash-positive in a year. The