To cut expenditure on logistics, UltraTech Cement is set to build a Rs 100-crore terminal at the Mumbai Port to transport cement from its plants in Gujarat into Mumbai. By doing so, the Aditya Birla Group's company wants to cut logistics costs and go deeper into one of the largest cement markets in India.
For a payment of Rs 35 crore, UltraTech will get a land area of 2.5 hectares on lease for 30 years and a guaranteed flow of traffic through the Mumbai Port. The facility has a capacity of 1.25 million tonne.
The deal helps the company to leverage its real estate and get guaranteed traffic.