Ultratech Cement is mulling a massive 5.50 million tonne per annum integrated cement complex in Karur, Dindigul district in Western Tamil Nadu. The investment details are not known, but industry sources say it could be in the region of Rs 5,000 crore minimum.
Information accessed by a leading newspaper indicates that Samruddhi Cement, now part of UltraTech Cement, is planning a 5.50 million tonne cement plant, a 4.5 million tonne per annum clinker facility, a 3X25 mw captive power plant for the complex, a 15 mw waste heat recovery project in Karur, in Dindigul district.
Ultra tech, part of the Aditya Birla group, is already in the process of implementing several expansion projects including the 3.0 million tonne cement plant at Nawalgarh in Rajastan with an investment of Rs 2,500 crore, a 3.5 million tonne plant at Satna in Madhya Pradesh with Rs 2,200 crore investment and a 4.25 million tonne plant at Malkhed in Gulbarga district in Karnataka with a cumulative investment of Rs 3,000 crore, CMIE's projects monitor said.
Though the Tamil Nadu plant will not come any time soon, the process to be ready has begun, sources said. Industry sources said that south India is in cement surplus state. There is nearly 30 per cent more capacity than the demand. Demand-supply mismatch will remain for at least another 3 to 4 years. No prudent investor will create fresh capacities in this region.
May be UltraTech is planning for capacities beyond 2017, industry sources said. The capacity in South is around 100 million tonne while the demand is only 70 million tonne.