UltraTech to invest $1.8 billion for capacity addition

UltraTech to invest $1.8 billion for capacity additionIndia's biggest cement producer, UltraTech has said that it is going to invest $1.8 billion for adding a capacity of 9 million tons. It will be done in another 3 years' time and is being done since the Indian economy is going to see a boost in the demand.

Indian cement industry has a capacity of 270 million tons and is the second largest in the world. The growth rate of the sector has been between 10-12 per cent last year and was driven mostly by the demand for the infrastructure sector.

In another development, UltraTech, part of Aditya Birla group has got a regulatory approval to absorb the cement business and is now producing 49 million tons. The company has also said that it will spend $1.2 billion for starting a clinkerisation plants in central and south India.

The cement maker is already in the process of spending Rs. 2,600 crore for adding grinding capacity in Western India.

Along with Swiss cement maker, Holcim UltraTech holds one fifth of Indian cement sector. The other international players like LaFarge, Vicat are trying hard to make their presence feel.