The production capacity of UltraTech Cement will cross 71 million tonnes per annum (MTPA) by the end of this financial year, following the acquisition of two cement units in Madhya Pradesh and completion of ongoing projects, said its Chairman Kumar Mangalam Birla at the company’s 15th (AGM) on Friday.
“The directors have approved the acquisition of the cement units of Jaiprakash Associates Ltd., situated at Bela and Sidhi in Madhya Pradesh. With this, an additional 4.9 MTPA capacity and thermal power generation capacity of 180 MW will be added. This acquisition will raise UltraTech’s cement capacity in India to 65.1 MTPA from 60.2 MTPA. With the on-going projects underway, the capacity in India will grow to 71.2 MTPA by 2015-16,” said Mr. Birla.
He said the acquisition of the Gujarat units of Jaypee Cement Corporation Ltd. had been completed.
“The acquired facilities comprise of an integrated unit at Sewagram and a grinding unit at Wanakbori, with a combined capacity of 4.8 MTPA. The enterprise value was Rs.3,800 crore besides the actual net working capital at closing,” he said.
Mr. Birla said now the company meets 80 per cent of its total power requirement from captive sources.
“The company augmented its captive power capacity with the commissioning of 50 MW of thermal power plants and 22.5 MW through waste heat recovery. This brings the total thermal power capacity to 717 MW and waste heat recovery at 33 MW,” Mr. Birla said.
During the first quarter, UltraTech commissioned 15 MW waste heat recovery systems, taking the total power generation capacity from waste heat recovery to 48 MW, he added.
He said despite the cement industry undergoing a difficult period, due to slugging demand from rural markets, Ultratech had performed well last year.
Meanwhile, at the AGM, the management sought shareholders nod for issuing NCDs on private placement basis up to Rs.9,000 crore.
