28 August 2006
UltraTech declares 17.5 per cent dividend, an increase of 133 per cent; plans capex of Rs.1424 crore
At the UltraTech AGM today, Mr. Kumar Mangalam Birla outlined the company's capex plans. Said Mr. Birla, "The company has earmarked a capex of around Rs.1,424 crore to be spent over the next three years. Of this, Rs.844 crore is towards the installation of captive power plants at its units in Gujarat and Chhatisgarh. To cater to the growing demand for cement and grow its market share in South India, we will additionally invest Rs.1,274 crore towards a 4 mtpa capacity expansion at UltraTech's plant in Andhra Pradesh. This is inclusive of setting up of a 1.30 mtpa split grinding unit and a 46 mw captive thermal power plant".
A dividend of Rs.1.75 per share was declared as well. This is 133 per cent up as compared to Rs.0.75 per share paid in the previous year. The total outgo on account of dividend to be paid to the shareholders inclusive of corporate tax will be Rs.24.85 crore as against Rs.10.60 crore in the previous year.
On the company's outlook, Mr. Birla stated that UltraTech's growth will continue to be powered by optimising efficiencies, leveraging logistic benefits, higher use of alternative fuels and a thrust on value added product mix.
"The government's initiatives on infrastructure development and the boom in the housing sector are major growth drivers for the cement industry. Incidentally, the Indian cement sector is the second largest in the world after China. Regardless, the per capita consumption of cement in India is just 125 kg, which is very low in comparison with the average world consumption of 267 kg, underlining its tremendous growth potential. In the medium term, the demand and supply situation is expected to be in balance, with a couple of years before the next cycle of new capacity enters the market", he averred.
For more information, contact:
Dr. Pragnya Ram
Group Executive President
Corporate Communications & CSR
Aditya Birla Management Corporation Private Limited
Tel: 91-22-6652 5000 / 2499 5000
Fax: 91-22-6652 5741/ 42