UltraTech Cement commissions new plant in Madhya Pradesh; stock up 4%

The stock has moved higher by 4% to Rs 4,152 on the BSE.

Shares of UltraTech Cement have moved 4% higher to Rs 4,152 per share on the BSE, after the company announced commissioning of a greenfield clinker capacity of 2.5 million tonnes per annum capacity (mtpa) at Manawar, Dhar, Madhya Pradesh (MP).

UltraTech has commissioned a cement grinding facility with a capacity of 1.75 mtpa along with an auto loading facility. Another cement grinding facility with a capacity of 1.75 mtpa as well as a waste heat recovery system of 13 MW capacity is under construction and both are expected to be completed before September, 2018.

This new plant will provide a strategic advantage to UltraTech for serving the growing cement demand from the state of Madhya Pradesh's main industrial belt - the Dewas-Ratlam-Pithampur-lndore sector. It will also help the Company to increase its market share in a fast growing market. The Company will enhance its presence in the North markets, by re-allocating its capacities suitably, UltraTech Cement said in a press release.

Currently, the cement demand in MP is growing close to double-digit mark and UltraTech's existing plants in the state are already operating at over 85% utilisation level, well above industry benchmarks, it added.

With the commissioning of this plant, UltraTech now has 19 integrated plants. The total cement manufacturing capacity will stand augmented to 96.5 mtpa, it added.