Bangur family promoted Shree Cement on Wednesday announced to invest Rs 7,000 crore for capacity expansion in the next phase of capacity augmentation.
The board of Shree Cement in its meeting held on Wednesday approved "clinker & cement capacity expansion projects with a total capital expenditure of around Rs 7,000 crore", said regulatory updates by the company.
Shree Cement, the third largest cement manufacturer, will invest in setting up a clinker capacity of 3.65 million tonnes in Pali, Rajasthan.
Besides, it will also invest in a cement capacity of 6 million tonnes at Pali, Rajasthan and Etah, Uttar Pradesh.
Similarly, it will also invest in two Karnataka-based units in Kodla and Bangalore.
"We are also happy to announce our next phase of capacity expansion projects of 12 million tonnes that will take the group’s cement capacity to 72.4 million tonnes,” it said.
According to the information available, Shree Cement is among India's top three cement producers, with an installed cement production capacity of 43.4 MTPA and a power generation capacity of 752 megawatts.
Its Managing Director Neeraj Akhoury said the current macro-economic environment in the country, combined with the government focus, is supporting growth for the cement sector.
"Accordingly, we are accelerating our growth plans to ensure that we seize the opportunity to the maximum. We have set an ambitious goal of taking our capacity beyond 80 million tons in the coming years and are aggressively charting out action plans to implement the same," he said.
The company has started the trial commissioning of its new unit at Purulia, West Bengal, and is confident to commence operations of new plants at Nawalgarh in Rajasthan and Guntur in Andhra Pradesh within scheduled timelines, said Shree Cement in its filing.
"The wholly-owned subsidiary of the company M/s Shree Cement East Pvt Ltd started trial production during Q1/FY24. With this unit, the group’s cement production capacity in India stands increased to 49.9 MTPA," it said.
While at Nawalgarh, work at the integrated unit is nearing completion and is expected to be commissioned as per schedule in Q3/FY24.
At its Guntur plant, work is progressing satisfactorily and plant commissioning is targeted in Q2/FY25.
For the FY23, Shree Cement's consolidated revenue was Rs 17,852.33 crore.