UltraTech Cement Ltd

History of UltraTech Cement Ltd

UltraTech Cement Limited was incorporated on August 24, 2000 as a Public Limited Company with the name 'L&T Cement Limited' as a 100% subsidiary of Larsen & Toubro Limited. On November 2003, Company's name was changed from L&T Cement Limited to UltraTech Chem Co. Limited. In July 2004, Grasim Industries Ltd acquired management control of the Company and the name was changed from UltraTech ChemCo Limited to UltraTech Cement Limited on October 14, 2004. The Company is the largest manufacturer of Grey Cement, Ready Mix Concrete (RMC) and White Cement in India. It is also one of the leading cement producers globally. With a consolidated Grey Cement Capacity of 132.4 MTPA, it is the third largest cement producer in the world excluding China, and the only one globally (out of China) to have over 100 MTPA of cement manufacturing capacity in a single country. The Company has established a strong market presence in India and internationally. It operate 24 integrated Units, 1 white cement Unit, 3 putty Units, 29 grinding Units, 8 bulk packaging terminals, and 5 jetties across India, UAE, Bahrain, and Sri Lanka. The Company is engaged in the manufacture and sale of Cement and Cement related products UltraTech Cement has 23 integrated plants, 1 clinkerisation plant, 27 grinding units and 8 bulk packaging terminals. Its operations span across India, UAE, Bahrain and Sri Lanka. UltraTech Cement is also India's largest exporter of cement reaching out to meet the demand in countries a ...round the Indian Ocean and the Middle East. UltraTech Cement is a subsidiary of Grasim Industries Ltd. In the year 2004, pursuant to the Scheme of Arrangement, the Cement business of Larsen & Toubro Ltd was demerged and transferred to the Company with effect from April 1, 2003. In May 14, 2004, the Company acquired four crore Equity Shares of Larsen & Toubro Ceylino (Pvt.) Ltd. from Larsen & Toubro Ltd. at an aggregate consideration of Rs. 23.03 crore. Also, Narmada Cement Company Ltd became a subsidiary of the company by virtue of the scheme of arrangement for de-merger of cement business of Larsen & Toubro Ltd. During the year 2005-06, the company increased the production capacity of Cement from 155 lakh tonnes to 170 lakh tonnes. As per the scheme of amalgamation, Narmada Cement Company Ltd was amalgamated with the company. Thus, the entire undertaking of Narmada Cement Company Ltd was transferred to the company with effect from October 1, 2005. During the year 2007-08, the company increased the production capacity of Cement from 170 lakh tonnes to 182 lakh tonnes. They set up 15 Ready Mix Concrete plants across the country. In March 2008, the Clinkerisation (pyrosection) unit at Andhra Pradesh Cement Works (APCW) was commissioned. During the year 2008-09, the company increased the production capacity of Cement from 182 lakh tonnes to 219 lakh tonnes as a result of expansion of capacity at the company's unit at Andhra Pradesh Cement Works (APCW) together with a new split grinding unit at Ginigera, Karnataka. They commenced commercial production of cement from their unit in APCW and grinding unit at Ginigera. During the year, the company commissioned 192 MW captive TPPs at their units at APCW, Hirmi Cement Works (HCW) in Chhattisgarh and Gujarat Cement Works (GCW) in Gujarat in a phased manner. Also, they set up new Ready Mix Concrete (RMC) plants and thus increased the RMC capacity to 4.76 million cubic metres per annum. During the year 2009-10, the company increased the production capacity from 219 lakh tonnes to 231 lakh tonnes. They incorporated a wholly-owned subsidiary company in UAE in the name of 'UltraTech Cement Middle East Investments Ltd'. In May 2010, the cement business of Grasim Industries Ltd was de-merged and vested in Samruddhi Cement Ltd. In July 2010, Samruddhi Cement Ltd was amalgamated with the company. During the year 2010-11, the company's wholly-owned subsidiary, UltraTech Cement Middle East Investments Ltd completed the acquisition of ETA Star Cement (ETA) and acquired management control of ETA's operations in the UAE, Bahrain and Bangladesh. The company's capacity stands augmented to 52 MMTPA placing it among the top 10 cement companies in the world due to the merger and acquisition. On 24 July 2012, UltraTech Cement announced that it has signed an agreement with the shareholders of Gotan Lime Stone Khanij Udyog Private Limited (GKUPL), Rajasthan to acquire 100% equity shares of GKUPL. With this acquisition, GKUPL has become a wholly owned subsidiary of the company. On 25 March 2013, UltraTech Cement announced that it has commissioned a clinkerisation plant of 3.3 mtpa at Rawan, Raipur, Chhatisgarh and a grinding unit of 1.6 mtpa at Hotgi, Solapur, Maharashtra. On 10 July 2013, UltraTech Cement announced that it has commissioned a clinkerisation plant of 3.3 mtpa at Malkhed in Karnataka. The Board of Directors of UltraTech Cement at its meeting held on 11 September 2013 approved the acquisition of the cement unit of Jaypee Cement Corporation Limited (JCCL) located in Gujarat, by way of demerger through a Scheme of Arrangement between JCCL and the company. JCCL is a wholly-owned subsidiary of Jaiprakash Associates Limited (JAL). The combined capacity of both the divisions of the Gujarat unit is 4.8 mtpa of cement with 57.5 MW coal based thermal power plant, limestone reserves for over 90 years at current capacity and a captive jetty at Sewagram. The enterprise value is Rs 3800 crore besides the actual net working capital at closing. On 20 February 2015, UltraTech Cement announced that it has won the auction conducted for a coal block at Bicharpur, situated in Madhya Pradesh. The company's bid of Rs 3,003 per metric ton was the highest. Commercial production from this coal block is expected to commence from FY 2018. On 16 March 2015, UltraTech Cement announced that it has commissioned a clinkerisation plant of 2 mtpa at Aditya Cement Works, Shambhupura, Rajasthan. The state of the art plant built at a cost of Rs 1250 crore can run on all kinds of fuel. On 26 March 2015, UltraTech Cement announced that the Rajasthan High Court has by its order dated 25 March 2015 quashed and set aside the order relating to cancellation of the mining lease of the limestone mines in the name of the company's wholly owned subsidiary Gotan Limestone Khanij Udyog Private Limited (GKUPL) and all consequential actions of the Rajasthan state government. The court has directed to handover the possession of mining lease to GKUPL forthwith. This will enable GKUPL to take possession and operate the mines. On 28 August 2015, UltraTech Cement announced that it has commissioned a bulk terminal with a capacity of 2 mtpa in Pune, Maharashtra. On 22 September 2015, UltraTech Cement announced that it has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Jhajjar in Haryan. The 3rd line at Aditya Cement, Rajasthan commissioned in March 2015 will cater to the clinker requirement of this plant. On 30 September 2015, UltraTech Cement announced that it has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Dankuni in West Bengal. Clinker requirement of the Dankuni grinding unit will be met through Rawan Cement Works in Chhattisgarh. The grinding unit is strategically located at a distance of less than 50 kms from Kolkata city. On 26 February 2016, UltraTech Cement announced the withdrawal of the Scheme of Arrangement between the company and Jaiprakash Associates (JAL) for the acquisition of JAL's entire cement business, including mining leases, situated at Bela and Siddhi in Madhya Pradesh as a going concern on a slump exchange basis. The company decided to withdraw the Scheme of Arrangement between the company and Jaiprakash Associates (JAL) after the High Court indicated that based on the recent amendments in the provisions of the Mines and Minerals (Development & Regulation) Act, 1947 (MMDRA) preventing transfer of mines granted other than through auction, and in the absence of any clear timelines for any amendment/clarification in the MMDRA, the court cannot sanction the Scheme. Earlier, UltraTech Cement's Board of Directors had at its meeting held on 23 December 2014 approved a proposal for the acquisition of cement units of Jaiprakash Associates Limited (JAL) located in Madhya Pradesh at an enterprise value of Rs 5400 crore. On 19 April 2016, UltraTech Cement announced that the company has commissioned a cement grinding unit with a capacity of 1.6 mtpa at Pataliputra in Bihar. The unit will cater to the markets of eastern India. On 9 May 2016, UltraTech Cement announced that its Board of Directors have approved a proposal for increase in investment limits by Registered Foreign Portfolio Investors from the existing 24% of the paid-up equity share capital to 30% of the paid-up equity share capital of the company. The Board of Directors of UltraTech Cement at its meeting held on 4 July 2016 approved a Scheme of Arrangement between the company, Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors for acquisition of cement plants for a total capacity of 21.2 mtpa at an enterprise value of Rs 16189 crore. Earlier, the Board had at its meeting held on 31 March 2016 approved signing definitive agreements for the acquisition of the identified cement plants Jaiprakash Associates in the states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh having a capacity of 21.2 mtpa at an enterprise value of Rs 15900 crore. At that time, UltraTech Cement also announced that the company and Jaiprakash Associates have agreed to exclude the 1.2 mtpa capacity in Karnataka as envisaged earlier. Earlier, on 28 February 2016, UltraTech Cement announced that it had entered into a binding Memorandum of Understanding (MoU) with Jaiprakash Associates for the acquisition of its identified cement plants having total capacity of 22.4 mtpa situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka at an enterprise value of Rs 16500 crore. On 7 July 2016, UltraTech Cement announced that the company participated in the auction of coal linkages for the cement sector in Maharashtra and secured 52,000 TPA of G10 grade coal at basic floor price of Rs 1,510 per ton and premium of Rs 20 per ton. The company also secured coal linkage of 30,000 TPA of grade 8 coal at basic floor price of Rs 2,060 per ton in Maharashtra. On 26 July 2016, UltraTech Cement announced that the company participated in the auction of coal linkages for the cement sector and secured 95,000 tons of coal at a premium of Rs 80 per ton over base price of Rs 970 per ton from Junadhi Mines in Chhattisgarh. On 28 July 2016, UltraTech Cement announced that it has participated in the auction of coal linkage for captive power plant sub-sector and secured 27,600 tons of coal at a premium of Rs 150 per ton over notified price of Rs 970 per ton and 19,700 tons of coal at a premium of Rs 150 per ton over notified price of Rs 970 per ton from Dipka Mines (SCDG) in Chhattisgarh. On 2 August 2016, UltraTech Cement announced that it has participated in the auction of coal linkage for captive power plant sub-sector and secured 1.29 lakh tons of coal at a premium of Rs 100 per ton over floor price of Rs 970 per ton from Gevra Road mines in Maharashtra and 138,200 tons of coal at a premium of Rs 125 per ton over floor price of Rs 970 per ton from New Kusmunda (NKCR) mines in Chhattisgarh. On 19 January 2017, UltraTech Cement announced that the Competition Commission of India (CCI) in a reference filed by the state government of Haryana for alleged cartelization in August 2012 has passed an order directing the company and other opposite parties to cease and desist' from indulging in the acts/conducts which have been found to be in contravention of the provisions of the Competition Act, 2002. CCI also slapped a penalty of Rs 68.30 crore on the company, being 0.3% of the average turnover for the financial years 2012-13, 2013-14 and 2014-15. UltraTech Cement said at that time that it will take appropriate action after examining the CCI order fully. On 12 May 2017, UltraTech Cement announced that it has commissioned a 0.3 mtpa slag cement manufacturing capacity at its existing facilities at Patliputra in Bihar. This will bolster its capabilities to meet the growing demand for slag cement from the markets of Easter India. On 29 June 2017, UltraTech Cement announced that it has completed the acquisition of Jaiprakash Associates' six integrated cement plants and five grinding units spread across Himachal Pradesh, Uttar Pradesh, Uttarakhand, Madhya Pradesh and Andhra Pradesh, with a capacity of 21.2 million tons. The Board of Directors of UltraTech Cement at its meeting held on 9 December 2017 approved the setting up of a 3.5 mtpa integrated cement plant at Pali, Rajasthan, at an investment of around Rs 1850 crore. Commercial production from the plant is expected to commence by June 2020. The plant will cater to the markets in western Rajasthan where UltraTech does not have a significant presence. On 6 March 2018, Reserve Bank of India notified increase in limit for investment in the equity share capital of the company by Foreign Portfolio Investors (FPIs) from 30% to 40% of the paid up capital of the company. Earlier, on 9 December 2017, the Board of Directors of UltraTech Cement approved proposal for an increase in the investment limit by Registered Foreign Portfolio Investors, including foreign institutional investors (FIIs) from 30% to 40% of the paid up equity share capital of the company. On 19 March 2018, UltraTech Cement announced that the company has in-principle concluded commercial understanding with Binani Industries Limited (BIL) for purchase of BIL's entire stake of 98.43% in Binani Cement Limited (BCL) subject to termination of insolvency proceedings against BCL, entering into definite agreement and other customary and regulatory approvals. BIL is independently seeking termination of insolvency proceedings against BCL. The Board of Directors of UltraTech Cement at its meeting held on 19 March 2018 agreed to issue of a comfort letter confirming that the company will provide funds amounting to Rs 7266 crore, being the amount it had offered to the Committee of Creditors in terms of the Resolution Plan submitted by it for acquiring BCL. BIL will use the letter of comfort issued by UltraTech Cement as a support in its application seeking termination of the insolvency proceedings against BCL. During the fiscal 2019, the company spent over Rs 1600 crore on various Capex initiatives. Also upon the infusion of funds to the extent of Rs 3400 crore, the company acquired UltraTech Nathdwara Cement Ltd. having an installed capacity of 6.25 MTPA and w.e.f. 20th November, 2018 UNCL became a wholly owned subsidiary of UltraTech Cement Ltd. During FY 2019, Company commissioned a greenfield cement project of 3.5 MTPA at Manavar in Madhya Pradesh. The Scheme of Demerger for acquisition of Century Cement Business was made effective from 1st October, 2019. Consequent to this acquisition, cement manufacturing capacity stands augmented to 114.8 MTPA, including its overseas capacity. In the FY2020, the Company spent Rs 1595 crore on various Capex initiatives. During the year 2020, Company commissioned 33MW of Waste Heat Recovery System (WHRS) capacity. During FY 2022, Company commissioned cement capacity of 3.2 MTPA at Patliputra Cement Works, Bihar; Dankuni Cement Works, West Bengal and Line II of Bara Grinding Unit, Uttar Pradesh, which is the first phase of the 19.5 MTPA capacity expansion announced in December 2020. It also commenced operations from its 7th bulk terminal at Kalamboli, Navi Mumbai. The Company launched UltraTech Durafacad, UltraTech, Corroprotect in 2023. It commissioned 12.4 MTPA of new grey cement capacity during FY 2023 at Dalla, in Uttar Pradesh; Dhule in Maharashtra, Dhar, in Madhya Pradesh; Pali in Rajasthan, Jharsuguda in Odisha, Hirmi in Chhattisgarh and Cuttack in Odisha. It also commissioned a 2.2 MTPA brownfield cement capacity at Patliputra, Bihar, in April 2023. A third Birla White wall care Putty Plant was commissioned at Nathdwara, Rajasthan. In 2024, the Cement Business of Kesoram Industries Limited got demerged into the Company through Scheme of Arrangement. In 2024, Company added 13.27 MTPA grey cement capacity across locations. It commissioned 2.7 MTPA greenfield cement capacities each at Karur (Tamil Nadu) and Kukurdih (Chhattisgarh), respectively aggregating to 5.4 MTPA in April 2024. Company also acquired a 0.54 MTPA cement grinding asset of Burnpur Cement Limited, at Patratu in Jharkhand. Further, Company purchased a grinding asset with an installed capacity of 1.1 MTPA in addition to a captive railway siding, at Parli in Maharashtra from The India Cements Limited. Company added 16.3 MTPA of new capacity in FY 2024-25. It operationalized the first bulk terminal in Uttar Pradesh with 1.8 MTPA capacity. It added 42.6 MTPA of consolidated grey cement capacity through organic and inorganic growth in FY 2024-25, taking total capacity to 188.8 MTPA (including overseas capacity of 5.4 MTPA). It commissioned an additional 3.5 MTPA bringing the consolidated capacity to 192.26 MTPA in FY25. The Cement Business of Kesoram Industries Limited (Kesoram) was acquired by the Company, via Scheme of Arrangement effective from March 1, 2025. In terms of the Scheme, Company has allotted 59,74,301 equity shares of Rs 10/- each to the shareholders of Kesoram on 10th March, 2025.