Ultratech to have 39 ready mix concrete plants by FY09

Kumar Mangalam Birla, Chairman, Ultratech Cement, said the company is setting up a 92-mw thermal power plant at Gujarat Cement Works. “The first two phases of 23 mw each have already commenced, and the balance plant will be fully operational during the current year. Additional three more thermal plants aggregating to 135 mw are being set up at Andhra Pradesh Cement Works, Hirmi Cement Works in Chhattisgarh, and Awarpur Cement Works in Maharashtra, respectively. The power plants at APCW and Hirmi will be commissioned by October 2008.”

On commissioning, he said the company would have access to around 270 mw of captive thermal power catering to 80% of the company’s power requirements. “These power plants will pare the company’s power cost significantly. To some extent, this will offset the effect on the company’s margins on account of rising input prices.”

The ready mix concrete reflects our response to the evolving requirements of our customers, Birla added. “Retail customers prefer to buy cement in bags, while large institutional customers prefer either bulk cement or ready mix concrete, which is cement in ready to use form. To cater to the growing demands of this segment, the company has 26 ready mix concrete plants operating across the country with a combined capacity of 4.8 million cubic meters per annum. We expect to increase this to 39 RMC plants with a capacity of 7.2 million cubic meters per annum by the end of FY09.”