Aditya Birla Group’s Ultra Tech Cement is expecting a 10 per cent share from Middle East market through its recent acquisition of ETA Star Cement of Dubai.
The Chairman of UltraTech Cement Mr. Kumar Mangalam Birla said to its shareholders in its 11th AGM that they are aiming to achieve a target of 10 per cent market share from its ETA Star acquisition.
The Ultra Tech Cement Acquired ETA Star Cement last year in order to enter the markets in UAE (United Arab Emirates) Bangladesh and Bahrain.
Mr. Birla also added that the acquisition is as per their long-term strategy to expand the company globally.The company is looking for acquisition to expand their business and have a larger global presence. Its merger with Samruddhi Cement not only increased its presence in India but it also resulted in making UltraTech Cement as the largest cement manufacturer in Indian and Ninth largest globally.
In FY 11 there was a dip in growth of cement industry. The prices of cement will remain subdued because the demand for it, is less than the supply. The year 2011-12 demand shall be around 228 (approx) mtpa whereas supply will be around 292 mtpa which is a surplus of 64 mtpa.
The existing situation should improve in the years to come. The company is also aiming to spend 11000 crores in the next 3 years to increase its productivity and efficiency. The current capacity of UltraTech’s is 52 mtpa.
“Bell the bull says: The cement sector is one of high growth potential sectors and UltraTech is exploring its organic & in organic growth to strengthen its market share.”