The company has stated that it will invest Rs 1,800 crore to set up a plant in Gujarat over the next two years as part of plans to expand its footprint in the construction value chain.
Shares of Ultratech Cement fell over 6 per cent on Thursday as the company announced its entry into the wires and cables segment. The counter opened in red at Rs 10,796.15 on the BSE against the previous close of Rs 10,423.25. It fell further amid selling pressure and touched a low of Rs 10,266.60 – a fall of 6.39 per cent from the previous close.
At the time of writing this news, the stock was down by 5.09 per cent and was trading at Rs 10,410. The 52-week high and low of the stock are Rs 12,143.90 and Rs 9,250, respectively. The market cap of Ultratech Cement is Rs 3,00,542 crore. The
Ultratech Cement expansion plan
The company has stated that it will invest Rs 1,800 crore to set up a plant in Gujarat over the next two years as part of plans to expand its footprint in the construction value chain.
The plant will be set up near Bharuch in Gujarat and is expected to be commissioned by December 2026, according to a statement from UltraTech Cement.
The board of the Aditya Birla Group firm on Tuesday approved the proposal to extend its footprint in the construction value chain, through its Building Products Division.
This is in accordance with the “company’s strategy to strengthen its position as a comprehensive Building Solutions provider,” said UltraTech.
Last year, Aditya Birla Group entered into the decorative paints segment by launching the brand Birla Opus.
“The Company aims to meet the growing demand for wires and cables across various sectors, including residential, commercial, infrastructure and industrial applications,” it said.
The wires and cables industry has witnessed a revenue CAGR of around 13 per cent between FY19 to FY24 and with the migration from the unorganised to the organized market, the outlook continues to remain robust which provides an attractive opportunity for a new trusted player in the sector, it said.
However, he also clarified that UltraTech will continue to focus on and grow its core cement business.
(With PTI inputs)
