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Business News/ Companies / News/  No plan to buy Jaypee’s Bhilai cement unit, says UltraTech
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No plan to buy Jaypee’s Bhilai cement unit, says UltraTech

Bloomberg on Wednesday reported that Ultratech is nearing a deal to buy the 2.2 mtpa grinding unit `600-700 crore

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Mumbai: UltraTech Cement Ltd has no plans to buy Jaiprakash Associates’ Bhilai cement unit, the company’s chairman Kumar Mangalam Birla told shareholders on Friday.

“As of now, there are no plans to buy Jaypee’s Bhilai plant," Birla said while answering shareholder queries at the annual general meeting.

Bloomberg on Wednesday reported that Ultratech is nearing a deal to buy Jaypee’s 2.2 million tonne per annum (mtpa) grinding unit in Bhilai for 600-700 crore. Jaiprakash Associates runs the Bhilai unit in a joint venture with state-run Steel Authority of India Ltd (SAIL).

On its two earlier cement unit acquisitions in Madhya Pradesh from Jaiprakash Associates, Birla said formalities had been completed. “With these (acquisitions) an additional 4.9 mtpa capacity and a thermal power generation capacity of 180 megawatts (MW) will be added," said Birla.

The acquisitions will take UltraTech’s cement capacity in India to 65.1 mtpa. Capacity will increase further to 71.2 mtpa by the end of the current financial year as ongoing projects are completed, Birla said.

The company has also built up its captive power capacity with the commissioning of 50MW in thermal power plants and 22.5MW through waste heat recovery, he added.

While demand for cement remains subdued because of a slowdown in infrastructure projects and the real estate sector, Birla said he expects a pick-up in light of the government’s recent initiatives.

“With the government’s thrust on infrastructure development, the housing sector, smart cities, roads, etc., UltraTech is well positioned to meet the expected rise in demand and participate in the next phase of growth in the country," Birla said.

He, however, acknowledged that low prices in certain parts of India such as the Gujarat market had impacted the profitability of the company’s assets in the state.

On Friday, UltraTech closed at 2,944.80 per share on BSE, 1.47% higher from its previous close, while the benchmark Sensex rose 0.61% to 26,392.38 points.

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Published: 29 Aug 2015, 12:28 AM IST
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