UltraTech Cement eyes 10 share from Gulf

Last year,the company acquired ETA Star Cement to enter into markets like UAE,Bahrain and Bangladesh.

Aditya Birla Group8217;s UltraTech Cement is eyeing 10 per cent share from the Middle East market,where it has recently forayed through the acquisition of ETA Star of Dubai.

8220;With the acquisition of ETA Star,we aim to achieve around 10 per cent market share there,8221; UltraTech Chairman Kumar Mangalam Birla told shareholders at the company8217;s 11th Annual General Meeting on Friday.

Last year,the company acquired ETA Star Cement to enter into markets like the United Arab Emirates UAE,Bahrain and Bangladesh.

8220;The acquisition is in line with long-term strategy of expanding our global presence across businesses and is consistent with our vision of taking India to the world,8221; Birla said.

The demand for infrastructure in the Indian Ocean Region IOR is growing,he said,adding,8221;We are focused on investing outside India in this region,where we see a large growth in infrastructure going forward. The investment in ETA is in line with our plan our strategy to leverage in IOR8221;.

8220;We are on the look out for opportunities by way of acquisition etc for expanding our business.

8220;The merger with Samruddhi Cement has not only helped us increase our presence pan-India but also resulted in UltraTech emerging as the largest cement company in India and 9th largest in the world,8221; Birla said.

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On the dip in the growth of cement industry in FY8217;11,Birla said,8221;The prices will continue to remain subdued,given the fact that the demand for cement is much lesser than the supply.

8220;In FY12,the demand is likely to be around 228 MTPA and the supply would be 292 MTPA. Therefore,there will a surplus of around 64 MTPA. However,we expect the situation to correct in the next few years8221;.

The company plans to spend around Rs 11,000 crore over the next three years to enhance its productivity and cost efficiency,Birla said.

UltraTech has planned clinkerisation plants through expansion in Chhattisgarh and Karnataka,together with additional grinding units,installing waste-heat recovery systems and instituting bulk packaging terminals and setting up of ready-mix concrete plants.

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8220;These expansions are expected to be operational by Q1,FY14 and will augment cement capacity by 9.2 million tonne per annum MTPA. These projects will be funded through a judicious mix of internal accruals and borrowings,8221; Birla said. UltraTech8217;s current capacity stands at 52 MTPA.

8220;I view the cement sector as one with a high growth potential. UltraTech is exploring both organic and inorganic growth to further strengthen its leadership position,8221; he added.