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Shree Cement on Friday, December 19, announced a ₹2,000 crore investment in Maharashtra's Vidarbha region to set up a 2 million tonnes per annum (MTPA) cement manufacturing unit.
The new investment will be part of the group's three-year plan to take its overall capacity to 80 MTPA from the present 68 MTPA, a top official said.
Hari Bangur, the chairman of Shree Cement, said the group has had a long-standing association with the western Indian state, which includes a grinding unit in Pune, which is running successfully.
It is planning to put up a plant in Chandrapur district's Kondala and also signed a letter of intent for the proposed investment in the presence of Maharashtra's Chief Minister Devendra Fadnavis, Bangur said, listing out progress on the plan.
"Land is almost taken, ToR (terms of reference) has come, now EC (environmental clearance) is awaited. After EC, it is a matter of two years before the whole plant is there. About ₹2,000 crore will be the total investment," he added.
Bangur said India is consuming less than half of the world's average of per capita cement consumption at around 350 kg, and added that the consumption is bound to grow as it catches up with the world average of 600-1,000 kg per person.
Also read: Shree Cement shares fall after Chhattisgarh plant lockout to result in production shortage
He, however, did not share details of the other locations where the company intends to set up plants, maintaining that all the plans are in place and land acquisitions are on.
After 2028, once the 80 MTPA capacity is achieved, the company will announce a plan to take its capacity up to 100 MTPA, he added.
When asked about how it is funding the new capacity addition at Chandrapur, he said the company has over ₹5,000 crore in cash reserves and will be utilising the same for the new plant.
It has not relied on borrowings for its expansion projects and preferred internal accruals for the purpose, he said, stressing that it does not need any capital.
When pointed out that the cement industry is undergoing huge consolidation and quizzed about the company's acquisition plans, Bangur said it is the third largest after Aditya Birla Group's Ultratech and Adani Group's ACC and Ambuja Cements and added that it is third in the pecking order by a wide margin.
The Shree Cement scrip was trading at ₹25,639.65 apiece at 1510 hrs on the BSE against a 0.53 per cent gain on the benchmark.
Earlier in the day, the company had disclosed that it had locked out a plant in Chhattisgarh's Raipur because of non-cooperation by workers.
The new investment will be part of the group's three-year plan to take its overall capacity to 80 MTPA from the present 68 MTPA, a top official said.
Hari Bangur, the chairman of Shree Cement, said the group has had a long-standing association with the western Indian state, which includes a grinding unit in Pune, which is running successfully.
It is planning to put up a plant in Chandrapur district's Kondala and also signed a letter of intent for the proposed investment in the presence of Maharashtra's Chief Minister Devendra Fadnavis, Bangur said, listing out progress on the plan.
"Land is almost taken, ToR (terms of reference) has come, now EC (environmental clearance) is awaited. After EC, it is a matter of two years before the whole plant is there. About ₹2,000 crore will be the total investment," he added.
Bangur said India is consuming less than half of the world's average of per capita cement consumption at around 350 kg, and added that the consumption is bound to grow as it catches up with the world average of 600-1,000 kg per person.
Also read: Shree Cement shares fall after Chhattisgarh plant lockout to result in production shortage
He, however, did not share details of the other locations where the company intends to set up plants, maintaining that all the plans are in place and land acquisitions are on.
After 2028, once the 80 MTPA capacity is achieved, the company will announce a plan to take its capacity up to 100 MTPA, he added.
When asked about how it is funding the new capacity addition at Chandrapur, he said the company has over ₹5,000 crore in cash reserves and will be utilising the same for the new plant.
It has not relied on borrowings for its expansion projects and preferred internal accruals for the purpose, he said, stressing that it does not need any capital.
When pointed out that the cement industry is undergoing huge consolidation and quizzed about the company's acquisition plans, Bangur said it is the third largest after Aditya Birla Group's Ultratech and Adani Group's ACC and Ambuja Cements and added that it is third in the pecking order by a wide margin.
The Shree Cement scrip was trading at ₹25,639.65 apiece at 1510 hrs on the BSE against a 0.53 per cent gain on the benchmark.
Earlier in the day, the company had disclosed that it had locked out a plant in Chhattisgarh's Raipur because of non-cooperation by workers.
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