Aditya Birla Group company Ultra Tech Cement Ltd has chalked out a Rs 3,300 crore capex programme to be implemented over the next three years, to increase capacities and operational efficiencies. This will be steered by a strong balance sheet riding on higher price realisations in 2006-07.
Addressing shareholders at the annual general meeting of the company, chairman Kumar Mangalam Birla said, ?Additional capacities of 90 million tonne are likely to be commissioned over the next three years and could result in a surplus scenario, thereby putting pressure on domestic prices from the middle of 2008-09.?
The company plans to fund its capex plans with borrowings of Rs 1,700 crore and internal accruals of Rs 1,600 crore. Rs 1,000 crore will be raised this year and the remaining Rs 700 crore in the year 2008-09.
A whopping Rs 1,180 crore will be utilised to set up captive power plants of 225 mw in Andhra Pradesh, Chattisgarh and Gujarat, to ensure that 80% of the company?s power requirement is captive. Rs 1,000 crore will be utilised to augment the capacity at the Andhra Pradesh plant from 4 million tonne to 4.9 million tonne.
An investment of Rs 370 crore will be required to set up a terminal and a grinding facility in Gujarat.