Cement is now UltraTech Cement
product quality and customer care to remain the hallmark of
Mr. Kumar Mangalam Birla
UltraTech Cement, the new name of L&T Cement, in Mumbai
today, Mr. Kumar Mangalam Birla, Chairman, UltraTech Cement
Ltd, stated that "nothing has changed except the name.
So essentially what was earlier L&T cement, now transforms
into UltraTech Cement".
added that "In the cement sector, the erstwhile L&T
Cement brand was indeed a much admired brand. I am confident
this transition to UltraTech Cement will only help strengthen
it further. Fundamentally, the quality, the technology, the
plants and the people will remain unmatchable."
Cement will continue to be manufactured in state-of-the-art
plants at Kovaya and Jaffarabad in Gujarat, Awarpur in Maharashtra,
Hirmi in Chattisgarh and Tadipatri in Andhra Pradesh. Likewise,
they will continue to be supported by the grinding units at
Durgapur, Jharsaguda, Aarkonam, Magadalla and Ratnagiri, and
the packing terminals at Mangalore, Mumbai and Sri Lanka.
"Excellent product quality and customer care will remain
the hallmark of UltraTech," averred Mr. Birla.
the media on the brand transition, Mr. Birla remarked that
the name UltraTech was the outcome of an indepth research
across the country. "We wanted to mirror the DNA of L&T
Cement in the new brand name. Our research study indicated
that in the customers' mind, L&T stood for quality, technology
and expertise. The name UltraTech with the tag line "The
Engineer's Choice" aptly captures these features,"
commented Mr. Birla. The
brand transition is expected to be completed in India by the
end of December 2004.
distribution network is very widely spread out in the country
with over 5,500 dealers and 30,000 retailers. UltraTech enjoys
a leadership position in all of the markets that it serves.
Mr. Birla took great pride in the UltraTech team, who he said
"are committed to preserving the brand's premium and
its market share". The Company has enlisted the support
of all of its business associates. This includes dealers,
stockists, retailers, builders and engineers among others.
thrust is on enhancing our markets through augmenting our
capacities and bringing in higher volumes, adding 2.5 million
tonnes largely through debottlenecking. We have plans to maximise
operational efficiencies and to sweat the assets. To do so,
we have earmarked an immediate investment of Rs. 200 crore
for the current financial year. We wish to grow aggressively,"
stated Mr. Birla.
added that cement was clearly a focus area for the Group and
that the UltraTech acquisition signalled its commitment to
take this business even further. UltraTech's plants and markets
complement those of Grasim. There is no conflict of interest
here, he confirmed.
UltraTech and Grasim, the Aditya Birla Group's cement capacity
is in excess of 31 million tpa, of which 17 million tpa capacity
comes from UltraTech. This makes the Aditya Birla Group the
eighth largest cement player in the world.
now has 11 composite plants, seven split grinding units, four
bulk terminals (inclusive of one in Sri Lanka), and eight
ready mix concrete plants. This accords the Group a strong
national presence in the cement sector, with a leadership
position in several states.
at UltraTech will leverage synergies and further strengthen
our ability to compete in the Indian and the overseas markets.
We expect UltraTech to grow faster than the market and to
improve market shares. At the same time, developing beachheads
overseas through a profitable exports business is a priority
for us," remarked Mr. Birla.
view, the cement business is a great business to be in. Giving
an overview of the sector, Mr. Birla commented that India
has enormous potential for growth, given the lower per capita
consumption of only 110 kilos against the global average of
260 kilos at present. The per capita consumption of cement
in India is perhaps the lowest in South East Asia. In Thailand
it is 293 kilos, China 429 kilos, Malaysia 529
kilos, and in South Korea 951 kilos. India thus offers
a tremendous growth opportunity given its lower per capita
in per capita consumption would be fuelled by the strong growth
in the housing sector and the government's thrust on infrastructure
development. This will propel a robust volume growth.
Birla,"I believe that UltraTech is uniquely positioned
to capitalise on these developments, given its unique brand
values and customer orientation. I see a great future ahead."