UltraTech Cement, India’s largest cement producer, has entered into an agreement with India Cements to acquire a 1.1 million tonne per annum (MTPA) grinding unit in Parli in Maharashtra for Rs 315 crore.
The Aditya Birla Group company will also invest Rs 504 crore for expansion of its total capacity by 3 MTPA, including at the Parli facility.
The acquisition of the Parli facility, which was through an asset purchase agreement, includes that of a captive railway siding. This deal will help the company strengthen its presence in the Maharashtra market, it said.
Following the acquisition, UltraTech Cement will invest Rs 166.4 crore at the Parli unit to expand its capacity by 1.2 MTPA. It will also invest Rs 338 crore to expand the capacity by 1.8 MTPA at its Dhule plant in Maharashtra.
The capacity expansion, which will be funded through internal accruals, will cater to future growth. The firm has a total capacity of 147.3 MTPA (domestic grey cement) and a capacity utilisation of 80% during the nine months up to December 2023.
In April, UltraTech Cement had earmarked Rs 32,400 crore as capex for the next three years for expansion of its production capacity and completion of its acquisition of Kesoram Cement. The firm plans to expand production capacity to 198.2 MTPA.
