UltraTech Cement will be investing more than ₹800 crore on strengthening its presence in Maharashtra, with the buyout of a unit and adding capacity through brownfield expansions.
The country’s largest producer of cement will be buying a 1.1 million tonne grinding unit at Parli in Maharashtra from The India Cements for ₹315 crore.
“This purchase will help the company to strengthen its presence in the rapidly growing Maharashtra markets,” the company said.
Its board has also approved expanding production at this facility by 1.2 million tonnes. Additionally, UltraTech will adding 1.8 million tonnes of capacity at its unit in Dhule, taking the total capacity at the unit to 3.6 million tonnes.
It will spend ₹504.4 crore on capacity expansion, and this along with the ₹315 crore to be spent on the buyout of the Parli unit, will be entirely funded through internal accruals.
UltraTech has the capacity to produce 147.3 million tonnes of grey cement in India, and of this, nearly 23 million tonnes of capacity will be in Maharashtra.
The company had a capacity utilization of around 80% between April to December and plans to complete these capacity expansions in Maharashtra by 2025-26 (Apr-Mar), it said in an exchange filing on Saturday. Last year, chairman Kumar Mangalam Birla said the company planned to increase production capacity to 200 million tonnes.