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Aditya Birla Group to invest $500m in Turkey
MUMBAI: Aditya Birla Group has decided to invest $500 million (Rs 2,650 crore) to set up a greenfield integrated viscose staple fibre (VSF) plant in Turkey's industrial zone. The announcement comes at a point of time when India Inc, seized of policy and operational bottlenecks in setting up projects in India, is now looking to invest abroad in a big way. The $35-billion multinational corporation is also said to be in talks to acquire Lafarge cement unit in South Africa for about $800 million.
"In the VSF sector, we are reckoned as a marquee group with over 21% of the global market share. For us in the Aditya Birla Group, VSF is a core business. Our aspiration is to significantly ramp up our global market share and our capacities by the turn of the decade. Establishing a world-class plant in Turkey is a step in this direction," said Aditya Birla Group chairman Kumar Mangalam Birla commenting on the deal.
On cement acquisition plans, Birla, without identifying specific target, had earlier told TOI: "Ultratech is planning to make investments to enhance its cement manufacturing capacity. We are exploring both organic and inorganic growth to further strengthen our leadership position. We are on the lookout for value adding opportunities."
Birla aims to be among the top-three global players in its key businesses, including cement, and plans to enhance its cement manufacturing capacity by 50% to 75 million tonnes through overseas acquisitions and greenfield projects.
The group is already a world leader in VSF with capacity of 750 kilo tonnes per annum (KTPA) plans to reach a capacity of 1.1 million tonnes by 2015. The VSF facility in Turkey to be built in two phases will have a capacity of 180 KTPA along with a power plant, CS2 plant and a sulphuric acid plant.
Justifying investments in Turkey, K K Maheshwari, global director of the VSF business at Aditya Birla Group, said, "Turkey, I believe is the 4th largest consumer of VSF in the world. It is expected to become the 2nd largest consumer over the next 5 years. So setting up the VSF manufacturing facility here makes imminent sense. We used to export VSF to Turkey. Now, setting up a plat there will help us to cater local demand and export in neighbouring countries."
Shares of Grasim went up by 2.2% to close at Rs 2,517 in a weak Mumbai market, while Ultratech shares closed down 1.6% to Rs 1155.
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We need more economic investment/co-operation with Turkey
MUMBAI: Aditya Birla Group has decided to invest $500 million (Rs 2,650 crore) to set up a greenfield integrated viscose staple fibre (VSF) plant in Turkey's industrial zone. The announcement comes at a point of time when India Inc, seized of policy and operational bottlenecks in setting up projects in India, is now looking to invest abroad in a big way. The $35-billion multinational corporation is also said to be in talks to acquire Lafarge cement unit in South Africa for about $800 million.
"In the VSF sector, we are reckoned as a marquee group with over 21% of the global market share. For us in the Aditya Birla Group, VSF is a core business. Our aspiration is to significantly ramp up our global market share and our capacities by the turn of the decade. Establishing a world-class plant in Turkey is a step in this direction," said Aditya Birla Group chairman Kumar Mangalam Birla commenting on the deal.
On cement acquisition plans, Birla, without identifying specific target, had earlier told TOI: "Ultratech is planning to make investments to enhance its cement manufacturing capacity. We are exploring both organic and inorganic growth to further strengthen our leadership position. We are on the lookout for value adding opportunities."
Birla aims to be among the top-three global players in its key businesses, including cement, and plans to enhance its cement manufacturing capacity by 50% to 75 million tonnes through overseas acquisitions and greenfield projects.
The group is already a world leader in VSF with capacity of 750 kilo tonnes per annum (KTPA) plans to reach a capacity of 1.1 million tonnes by 2015. The VSF facility in Turkey to be built in two phases will have a capacity of 180 KTPA along with a power plant, CS2 plant and a sulphuric acid plant.
Justifying investments in Turkey, K K Maheshwari, global director of the VSF business at Aditya Birla Group, said, "Turkey, I believe is the 4th largest consumer of VSF in the world. It is expected to become the 2nd largest consumer over the next 5 years. So setting up the VSF manufacturing facility here makes imminent sense. We used to export VSF to Turkey. Now, setting up a plat there will help us to cater local demand and export in neighbouring countries."
Shares of Grasim went up by 2.2% to close at Rs 2,517 in a weak Mumbai market, while Ultratech shares closed down 1.6% to Rs 1155.
Link
We need more economic investment/co-operation with Turkey
