Aditya Birla Group Company, Ultratech Cement is planning to raise Rs.9000 crore by issuing non-convertible debentures through private placement for funding its ongoing expansion projects and refinance high-cost debt, reported Business line.
The company has recently taken over debt-ridden 21 million tonne per annum cement capacity of Jaiprakash Associates and Jaypee Cement for Rs.16,189 crore.
The company will be investing Rs.2,200 crore on de-bottlenecking projects, regulatory requirements, plant infrastructure and routine maintenance, Kumar Mangalam Birla, Chairman, said while addressing shareholders at the 17th annual general meeting on Tuesday.
The company plans to turn around Jaypee assets into EPS accretive in three years by improving operational efficiency and bringing down the cost of operations, he said.
Birla said, The operations will also be strengthened by the process and technological up gradation leading to enhancement of capacity utilisation, creating synergies in manufacturing, distribution and logistics. Further, he said economies of scale and reduced lead-time to markets will be achieved.
The company plans to set up 3.5 million tonnes per annum plant at Dhar in Madhya Pradesh with an investment of Rs.2,600 crore and aims to complete the project the end of FY-19, reported Business Line.