UltraTech to acquire Maharashtra grinding unit from India Cements for Rs.315 crore; Shares of UltraTech Cement up by 2%
Ultratech Cement’s share price jumped 2% in early trading on April 22 after the business revealed plans to buy a grinding unit from India Cements. UltraTech Cement’s shares were trading at Rs 9,519.65 at 09:24 am, up Rs .52.25, or 1.63% on the BSE.
UltraTech Cement Ltd is going to acquire Maharashtra grinding unit from India Cements worth Rs.315 crore. The Aditya Birla group firm has announced that it will also invest Rs.166.4 crore in the brownfield development of the unit, while this Maharashtra grinding unit at Parli has a capacity of 1.1 million tonnes.
The company will increase its capacity by 1.2 million tonnes.
An asset purchase agreement has been signed by the company with the seller for the aforementioned transaction. Ultratech Cement stated that this purchase will help the company boost its foothold in Maharashtra’s fast-rising markets.
The company’s board of directors also approved brownfield capacity expansions of 1.2 mtpa Maharashtra (Parli) which cost Rs 166.4 crore, following the purchase of the grinding unit, the capacity expansions of 1.8 mtpa Maharashtra (in Dhule), at a cost of Rs.338 crore.
The aforementioned capacity enhancement will be completed by FY26, with an investment of Rs.504.4 crore from internal accruals.
These would increase the company’s overall cement capacity to 151.6 million tons. This amount represents more than 150% of capacity in the United States and 80% of capacity in Europe, the company said.
