UltraTech Cement is reportedly in talks to buy north-eastern cement maker Adhunik MSP Cement’s Meghalaya plant for over Rs 700 crore. The company wants to buy the 1.5-million-tonne unit and bolster its presence in the fast-growing but largely untapped market in the North-East.
Adhunik Cement sells portland cement, which is one of the major products of UltraTech. Cement companies are rushing to build up capacities in the north-eastern region to cash in on the anticipated surge in demand triggered by the rising number of hydroelectric projects and road constructions. The government has firmed up an investment of over Rs 84,000 crore for setting up hydel projects in the North-East by 2020, which will produce 14,000 mw of electricity.
UltraTech Cement’s production for the month of February 2011 has surged 4.96% at 34.68 lakh million tonnes and dispatches soared 5.67% at 35.17 lakh million tonnes over February 2010.
The company manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units - 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five terminals, four in India and one in Sri Lanka.