India’s UltraTech Cement pledges $1.66 bln for growth to fight rising competition

Workers stroll in front of an UltraTech concrete combination truck at the enchancment position of a industrial complex on the outskirts of the western Indian metropolis of Ahmedabad April 22, 2013. REUTERS/Amit Dave

BENGALURU, June 2 (Reuters) – UltraTech Cement (ULTC.NS) mentioned it would exhaust 128.86 billion rupees ($1.66 billion) to amplify its annual ability as the well-known Indian cement maker appears to be to stave off competition from the sphere’s most modern entrant Adani Group.

The funds will in all probability be feeble to fabricate unique products and companies and amplify plants, which would force up the annual ability by 22.6 million tonnes, the company mentioned on Thursday. Commercial manufacturing from the products and companies is expected originate by fiscal 2025.

“This funding is backed by a solid conviction on India’s enhance in all probability as smartly as a deep and nuanced realizing of the market dynamics of the cement industry,” Kumar Mangalam Birla, chairman of the Aditya Birla Group, mentioned in a commentary.

UltraTech, the flagship company of the neighborhood, closing month lost a traipse to originate Holcim AG’s (HOLN.S) cement businesses in India (ACC.NS) to Adani Group.

That $10.5 billion make a selection made the conglomerate, managed by Asia’s richest man Gautam Adani, the 2nd-excellent Indian cement manufacturer with an annual ability of as a minimum 70 million tonnes. be taught extra

After the growth announced on Thursday, UltraTech expects to contain a ability of 159.25 million tonnes per annum – better than double that of the Adani Group.

The Indian executive had mentioned in its budget in February that it planned to step up spending within the original fiscal year to fabricate public infrastructure and force economic enhance, which will in all probability be a boon for infrastructure companies including cement makers. be taught extra

($1 = 77.5616 Indian rupees)

Reporting by Nallur Sethuraman and Chris Thomas in Bengaluru; Editing by Aditya Soni

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