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UltraTech Cement, an Aditya Birla group company, plans to raise ₹9,000 crore through issue of non-convertible debentures through private placement for funding its ongoing expansion projects and refinance high cost debt.
The company has recently taken over debt-ridden 21 million tonne per annum cement capacity of Jaiprakash Associates and Jayee Cement for ₹16,189 crore.
Addressing shareholders at the company’s 17th annual general meeting on Tuesday, Kumar Mangalam Birla, Chairman, said the company will be investing ₹2,200 crore on de-bottlenecking projects, regulatory requirements, plant infrastructure and routine maintenance.
The company plans to turnaround Jaypee assets into EPS accretive in three years by improving operational efficiency and bringing down the cost of operations, he said.
The operations will also be strengthened by process and technological upgradation leading to enhancement of capacity utilisation, creating synergies in manufacturing, distribution and logistics, said Birla.
Further, he said economies of scale and reduced lead-time to markets will be achieved.
The company plans to set up 3.5 million tonnes per annum plant at Dhar in Madhya Pradesh with investment of ₹2,600 crore and the project will be completed by the fourth quarter of FY-19.
The new plant will cater to south-west Madhya Pradesh and enhance presence in central India, he said. The company has commissioned cement grinding unit at Nagpur in Maharashtra and Patliputra in Bihar.
The greenfield expansion and acquisition of Jaiprakash assets will take the company’s cement capacity to 96.5 mtpa, including overseas operations in the UAE, Birla said, and added the company had spent ₹2,200 crore last fiscal in expansion projects.
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