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Shree Cement is investing INR 2,000 crore to set up a 2 MTPA cement plant in Chandrapur, Maharashtra, as part of its plan to increase total capacity to 80 MTPA over three years. The company, with existing operations in Pune, is awaiting environmental clearance, and construction is expected to take around two years. Funded entirely through cash reserves of over INR 5,000 crore, the expansion relies on internal accruals. India's cement consumption is currently low, offering growth potential, while Shree Cement maintains its position as the third-largest cement producer in the country.
Shree Cement has announced an investment of INR 2,000 crore to establish a 2 million tonnes per annum (MTPA) cement manufacturing unit in Maharashtra's Vidarbha region. This forms part of the company's three-year plan to raise its total production capacity from the current 68 MTPA to 80 MTPA. Advertisement
The chairman of Shree Cement, Hari Bangur, highlighted the group's long-standing presence in Maharashtra, including its operational grinding unit in Pune. The new plant is planned for Chandrapur district's Kondala area, and the company has signed a letter of intent for the project in the presence of Maharashtra Chief Minister Devendra Fadnavis. Bangur noted that the land acquisition is nearly complete, and the terms of reference (ToR) have been received, with environmental clearance (EC) now awaited. Once the EC is obtained, construction is expected to take around two years.
Bangur emphasized that India's per capita cement consumption is roughly 350 kg, less than half of the global average. He expects consumption to grow steadily as it approaches the world average of 600-1,000 kg per person. He did not disclose details of other planned plant locations but confirmed that all expansion plans are progressing with land acquisitions underway.
The company intends to use its cash reserves of over INR 5,000 crore to fund the new Chandrapur unit, relying on internal accruals rather than borrowings for expansion. Bangur added that Shree Cement is the third-largest player in India after Ultratech (Aditya Birla Group) and ACC & Ambuja (Adani Group), maintaining a significant lead over other competitors.
Separately, earlier in the week, Shree Cement reported a temporary lockout at its Raipur plant in Chhattisgarh due to worker non-cooperation. At the time of reporting, the company's shares were trading at INR 25,639.65 on the BSE, marking a 0.53% gain.
Source PTI
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