UltraTech Cement Ltd Share Price – NSE  /  BSE

Cement, Mid Cap

The grinding unit, with an installed capacity of 1.1 million metric tonnes per annum (mtpa), along with a captive railway siding, is located at Parli, Maharashtra.

The acquisition, valued at Rs 315 crore, was formalized through an asset purchase agreement between UltraTech Cement and India Cements.

This purchase will help the company to strengthen its presence in the rapidly growing Maharashtra markets, said the firm.

After the acquisition, the cement major stated that it will expand the grinding capacity at Parli by 1.2 mtpa with an investment of Rs 166.4 crore.

UltraTech will also expand capacity at its Dhule plant in Maharashtra by 1.8 mtpa with an investment of Rs 338 crore.

The brownfield expansions will be completed by FY26 with an investment of Rs 504.4 crore through internal accruals.

In a separate filing, the cement manufacturer added that it has received the National Company Law Tribunal (NCLT), Kolkata approval for the scheme of amalgamation of UltraTech Nathdwara Cement, a wholly-owned subsidiary of the company and its wholly-owned subsidiaries, Swiss Merchandise Infrastructure and Merit Plaza with itself. The merger has come into effect from April 20.

All assets and liabilities of the three subsidiaries will be transferred to UltraTech and the three companies will be dissolved without winding up, the company stated in the press release.

Subsequently, UltraTech Cement informed that it has received an order from the Assistant Commissioner, CGST & CX, Patna East, Bihar for demand of GST along with interest and penalty worth Rs 1.46 crore.

UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 138.39 MTPA.

The company reported 67.03% jump in consolidated net profit to Rs 1,774.78 crore on 7.85% rise in revenue from operations to Rs 16,739.97 crore in Q3 FY24 over Q3 FY23.

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The Board of UltraTech Cement at its meeting held on 20 April 2024 has approved investment of Rs 504.4 crore in the following brownfield capacity expansions:

- 1.2 mtpa at Parli, Maharashtra at a cost of Rs.166.4 crore, post-acquisition of the grinding unit

- 1.8 mtpa at Dhule, Maharashtra at a cost of Rs. 338 crore.

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UltraTech Cement has received the approved of the National Company Law Tribunal (NCLT), Kolkata bench on 03 April 2024 for the proposed scheme of amalgamation of UltraTech Nathdwara Cement and its wholly owned subsidiaries (Swiss Merchandise Infrastructure and Merit Plaza) with the company. The scheme was earlier sanctioned by NCLT, Mumbai by its order dated 18 December 2023. The appointed date of the scheme is 1 April 2023.

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This capacity is more than 150% of the capacity in the United States and 80% of Europe's capacity.

The company said that it took 36 years for the cement business of the Aditya Birla Group, to get to a capacity of 100 MTPA. UltraTech has subsequently added the next 50 MTPA in less than 5 years with an investment of around Rs 32,000 crore. Over the past two decades, UltraTech has grown 11x, far outpacing the industry growth of 4x.

Kumar Mangalam Birla, chairman, Aditya Birla Group, said: Reaching this milestone is symbolic of India’s ascent on the global stage and demonstrates the dynamism and scale of Indian corporations. UltraTech, as a national champion, is an enabler of India’s development.

With a mix of integrated cement plants, grinding units, bulk terminals across 59 locations in India along with 307 ready mix concrete plants, UltraTech’s scale and capacity footprint is unparalleled. And this scale will further enable UltraTech to service India’s growing demand for cement across the country.

Over the last 12 months, UltraTech has expanded its capacity by 18.7 MTPA. In addition to that, the ongoing expansion of 35.5 MTPA is actively being implemented across 16 locations.

The company is in the process of closing the proposed acquisition of Kesoram Cement. This will further augment UltraTech’s grey cement capacity to 198.2 MTPA.

UltraTech is committed to a capex of Rs.32,400 crores over the next three years,” the company said in a statement.

UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 138.39 MTPA.

The company reported 67.03% jump in consolidated net profit to Rs 1,774.78 crore on 7.85% rise in revenue from operations to Rs 16,739.97 crore in Q3 FY24 over Q3 FY23.

The scrip rose 0.25% to currently trade at Rs 10065 on the BSE.

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