Company Background: Ultratech Cements Limited

UltraTech Cement Ltd. is part of the Aditya Birla Group. With an installed capacity of 62
Million Tonnes Per Annum (MTPA), it is one of the leading manufacturers of cement in
the country.

The company manufactures and markets Ordinary Portland Cement, Portland Blast
Furnace Slag Cement and Portland Pozzalana Cement. They also manufacture ready mix
concrete. They are having 12 composite plants, one white cement plant, 16 grinding
units and six bulk terminals - five in India and one in Sri Lanka. The company's
subsidiaries are Dakshin Cements Ltd, UltraTech Cement Lanka Pvt Ltd and UltraTech
Cement Middle East Investments Ltd.

The foundation stone of UltraTech was laid in mid 1980s with the establishment of its
first cement plant at Jawad in Madhya Pradesh. To increase its presence in the sector,
Grasim acquired a stake in L&T cement ltd. in 2001. The stake was further increased to
a majority stake in 2003 thereby giving Grasim a pan-India presence and an increased
market share. In 2004, Grasim acquired a controlling stake in the company and L&T
cement was demerged. Henceforth the companys name was change to UltraTech
Cement Ltd. In July 2010, the other cement business of Grasim, grouped under
Samrudhi cement limited were amalgamated with UltraTech. In September 2010,
UltraTech Cement put itself on a global map as UltraTech Cement Middle East
Investments Limited acquired management control of ETA Star Cement Company along
with its operation in the UAE, Bahrain and Bangaldesh.
Source: Capitaline, Ultratechcement.com

Cement industry outlook
With nearly 300 million tonnes (MT) of cement production capacity, India is the second
largest cement producer in the world. It is expected to reach the production of 550 Mt
by 2020. The sector is dominated by private players including UltraTech, Ambuja, ACC,
Prism and Shree Cement Ltd. Of the total capacity, 98 per cent lies with the private
sector and the rest with public sector. A major part of the production is consumed by
housing sector, accounting for about 64% of the total consumption. The other major
consumers of cement include infrastructure (17%), commercial construction (13%) and
industrial construction (6%).

Cement production in India increased at a compound annual growth rate (CAGR) of 9.7
per cent to 272 MT over FY 0613. As per the 12th Five Year Plan, production is
expected to reach 407 MT by FY 2017. Currently, India has 185 large cement plants
spread across all states with an installed capacity of more than 350 million tonnes per
annum which is estimated to touch 550 MT in FY 20. Andhra Pradesh is the leading
state with 37 large cement plants, followed by Rajasthan and Tamil Nadu with 21 and
19 plants, respectively.

Infrastructure projects such as new and upgraded airports, more black top roads
connectivity in the country will further drive construction activity and with it the
demand of cement in the market will go up. All this brings about a tremendous scope for
the cement industry in the country.
Source: India Brand Equity Foundation (www.ibef.org)