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UltraTech to spend Rs 11,000 cr on new buys
Aditya Birla group company UltraTech Cement said on Friday that it would spend Rs 11,000 crore over three years to enhance various manufacturing facilities and was also looking for acquisitions under an expansion plan.
Aditya Birla group company UltraTech Cement said on Friday that it would spend Rs 11,000 crore over three years to enhance various manufacturing facilities and was also looking for acquisitions under an expansion plan.
"These (new projects) include clinkerisation plants through brownfield expansion at Chhattisgarh and Karnataka together with additional grinding units, installing waste-heat recovery systems and instituting bulk packaging terminals and setting up of ready-mix concrete plants," company chairman Kumar Mangalam Birla said at the firm's annual general meeting.
"We are open to acquisitions as and when the opportunity arises. We are, however, specifically concentrating on the Indian Ocean rim region for future investments," said Birla.
The ongoing projects would be funded through internal accruals and borrowings.
Ultra Tech's net sales rose 9% to Rs 4,365 crore in the April-June quarter from Rs 3,990 crore in the same period of the previous year, while net profit rose 22% to Rs 683 crore in the same period.
The company is aiming to boost capacity from 52 million tonnes to 75 million tonnes. Some 9.2 million tonnes of capacity is expected to go on stream by the first quarter of 2014.
The company's debt-equity ratio is 0.39 with an interest cover of approximately 8 times.
