MARKET UPDATE
| UltraTech Cement to raise $100 mn from IFC Mon, 04 Feb 2013 10:17:20 +0530 |
| Business Standard Economy Policy News UltraTech Cement, part of Aditya Birla Group (ABG), is planning to raise around $100 million from the International Finance Corporation (IFC). The proposed fund raising is to support the company's investment plan of around $297 million at Rawan village in Chhattisgarh. The total project cost is estimated at around $297 million and IFC has been requested to provide a loan of up to $100 million, according the Corporation It may be noted that UltraTech is already a client of IFC in India, Egypt, Thailand and Indonesia. The project involves clinker production capacity expansion at Ultratech's integrated cement plant in Chhattisgarh. The investments are needed to establish the necessary infrastructure to support the expansion. According to Ultratech's project disclosure report, this project is a key component of its strategy to expand cement capacity in Eastern India. Grasim Industries of the Aditya Birla Group has a 60.3% stake in UltraTech, which has 12 integrated cement manufacturing plants, 15 grinding units, five bulk terminals and more than 100 ready mix concrete plants, spanning India, UAE, Bahrain, Bangladesh and Sri Lanka with 52 million tons per annum (Mtpa) capacity. IFC has already begun working with UltraTech to identify resource efficiency opportunities for the Company to further reduce its carbon footprint. In addition, IFC is exploring the possibility of providing UltraTech with various advisory services in such areas as alternative fuel usage as well as corporate social responsibility initiatives, it further said. Ultratech is part of Aditya Birla Group, which operates in 33 countries with more than 1,33,000 employees worldwide. The group has diversified business interests in viscose staple fiber, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial services, telecom, BPO and IT services. |
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